To the strong revaluation that its shares are accumulating, we will soon have to add the profitability of its dividend. Inditex will pay its shareholders on November 4 and it will do so with a dividend that, still with its shares at historic levels, offers a profitability of 1.44%. View the dividend schedule here.
Even though there are still a few weeks left before the dividend payment, investors who wish to benefit from this dividend should pay attention because you will need to have the shares of textile giant in portfolio before October 31date from which its securities will begin to be listed without encashment rights. On this occasion, the payment of the additional dividend of 0.27 euros and the exceptional dividend of 0.50 euros will be combined. Thus, in total, Inditex investors will receive 0.77 euros per share for each share held.
This dividend, which corresponds to the last one that they will distribute on 2023 profits, is added to the one that the company already distributed in April, also of 0.77 euros. In total, Inditex will have distributed remuneration of 1.54 euros, the highest dividend in its entire history, offering an overall profitability of 2.9%.
Looking ahead to the next financial year, analysts are already seeing a further increase in Inditex’s remuneration. Concretely, they predict that the first payment of profits generated by the company in 2024 (which, according to experts, will be historic again) will be 0.80 euros per share and the total dividend reaches 1.71 euros. These forecasts assume that, even with its shares rising sharply, the first amount will yield 1.5% and the total 2025 dividend will yield 3.2%.
In recent years, Inditex has been one of the Ibex 35 companies that has distributed the majority of its profits to remunerate its shareholders. Concretely, the company has allocated an ordinary payment (percentage of profits going to the dividend) of 60% for 2023, although this is exclusively allocated to the payment of ordinary dividends, to which extraordinary dividends must be added.
Historic highs on the stock market
Inditex shows the best of itself not only at the operational level, but also at the stock market level. Over the course of this year, its shares have continued to mark historic maximum after maximum, which now stands above 53 euros per share. Regarding current prices, the revaluation of its price reaches 35% annually.
Although for the consensus of analysts who collect Bloomberg Inditex is currently listed with no revaluation potential; there are already eight investment banks that set the price of the Galician company’s shares at 54 euros or more, which still leaves it with a slight upward trend in the following months. The highest valuations even reach 60 euros per share (13% potential), a price at which the stock market value of Inditex would approach 187 billion euros, a capitalization never reached by any Spanish company.
Up to 50% of analysts advise buying the company’s stock, compared to 37.5% who advise holding or 12.5% who advise put the sign sell.
