Dividend Extravaganza, Except for Telefónica

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I've been in this wonderful profession of journalism for years, yet I continue to be amazed daily by how fleeting news can be. Just three weeks ago, BBVA's takeover bid was dominating all the headlines. Or rather, the failed bid. It was seventeen long months during which, day in and day out, we reported on the developments of what became the longest business operation in Spain's history, even surpassing Gas Natural's attempt to acquire Endesa.

Just twenty days after the limited support from Sabadell's shareholders (below 26%) surprised everyone and thwarted its acquisition by BBVA, the bid has practically been forgotten. And without much fuss, I dare say. The Basque bank has managed to put this failure behind it thanks to a shower of dividends. Over 1.8 billion euros will swell the accounts of its more than 680,000 shareholders today: for each share, the bank will pay 32 cents gross, the highest price in history. Who would complain about the failed offer on Sabadell when, after all, they are being rewarded with more money?

And not to mention if, besides being a BBVA shareholder, you are also one of the Vallesana, an entity that has also played its cards in this operation by showering its owners with dividends: the sale of TSB to Banco Santander will allow it to distribute (though, admittedly, one will have to wait until early next year) an additional 2.5 billion to the 370 million paid last August.

But, in reality, it's not just a strategy by BBVA to recover from what - no one doubts - has been a severe blow for the entity and, especially, for its president, Carlos Torres, who bet everything for the second time to see this bid through. It's an extravagance of dividends from the Spanish Stock Exchange, which has become the most generous in all of Europe, also encouraged, it must be said, by this dividend war spurred by banks to attract - or retain - shareholders.

Thus, at the same time as BBVA, CaixaBank is paying nearly 1.2 billion today, and Santander delivered a gross dividend of 11.5 cents per share last Monday, amounting to a total of 1.7 billion euros. And it's not just the banks: Inditex paid a total of 2.618 billion last Monday (84 cents gross per share), of which 1.552 went to its founder, Amancio Ortega, who for the tenth consecutive year is the richest man in Spain, according to Forbes.

Only throughout this November, Spanish companies will distribute more than 8.2 billion euros to their shareholders. And the year will end with an almost historic downpour of nearly 40 billion euros in dividends, only surpassed by the record 43.2 billion distributed in 2014.

And for 2026, another peak is anticipated in view of the good results achieved this year. But not for Telefónica. The company, which until now has accumulated one of the highest dividend yields in history, will be the 'ugly duckling' of the Ibex by halving the approximately 1.7 billion it will distribute this year (the first payment will be in December, the second in June 2026). Murtra's plan is to tighten the belt to save for those future acquisitions that will enable the telecom to compete head-to-head with other European giants. But its objective has been harshly punished by the market. In just two sessions, the operator lost 16% of its value, which, translated into euros, means a severe adjustment of 3.7 billion euros in the stock market.

With money, you don't play, Murtra. As the Catalans say: 40% prioritise the standard of living over democratic quality, according to a CEO (the Catalan CIS) survey published this Wednesday; that is, they prioritise money over freedom. As the great Francisco de Quevedo once said: "Mighty gentleman is Don Money."