Iberdrola Optional Dividend
IBE (Spanish Stock Exchanges)
Iberdrola offers UK shareholders the option to participate in Option 2, allowing them to sell rights on Spanish Stock Exchanges for the interim dividend scheduled in January 2026, with elections required by January 16, 2026. However, considering the current share price of €18.42, analysts suggest that Iberdrola may be overvalued by 132.1% based on cash flow assumptions. Investors should carefully evaluate this valuation alongside the company’s financial stability before making decisions.
Pros:
- Potential for dividend income
- Established multinational company
Cons:
- Overvalued based on DCF analysis
- Market volatility risk
The Iberdrola Optional Dividend may appeal to UK shareholders seeking flexibility in dividend payments, particularly those comfortable navigating international stock exchanges. However, potential investors should thoroughly assess the company’s valuation concerns and financial health before committing, as the current analysis suggests a significant overvaluation that could impact future returns.