What are the market’s favorite stocks according to the dividend they deliver?

Season concluded shareholders meetingthe companies defined one of the central themes of the appointments: the dividend to be delivered to its investors.

The most common way to measure the dividend yields of companies is through the Gavevidend Yield (DY), which measures the relationship between the dividends received per share and the price at which it was purchased.

Vector Capital’s variable income operator, Jorge Tolosa, stated that a new trend has been generated in this matter. For the executive, the stocks that lead the delivery of dividends will be those of those companies that “have a longer-term horizon for investors.”

consulted Bice Inversiones, Vantrust and Vector Capital, for the market’s favorite stocks according to the return they deliver through dividends, those chosen for the 2024 period are: SMU, Enel Chile and Aguas Andinas.

SMU, the big favorite

In the case of SMU, Vantrust Capital’s strategy and investment manager, German Serrano, pointed out that the supermarket chain will benefit from presenting a “attractive valuation of its shares within a defensive industry.”

He added that it is a company that “offers resilience and growth, significantly rewarding its shareholders through dividends,” which is projected to be 7.4% DY.

Tolosa from Vector Capital, highlighted that SMU is very strong in cash flow, so it would bring an interesting dividend payment. But, in addition, he projected that this will be a year of recovery of the company’s results.

For his part, the deputy manager of variable income studies at Bice Inversiones, Aldo Morales, maintained that SMU is showing stability of results, discounted valuations, which influences a solid delivery of dividends for the period.

Enel Chile and Aguas Andinas

Enel Chile is another stock that is a favorite in the market. For Serrano, regulatory uncertainty could significantly decrease “with the new rate stabilization agreement, which would allow rates to be progressively released, recover high amounts in CxC (accounts receivable) and unfreeze the value charge.” The executive estimates a DY of 13.8% for the next 12 months.

Morales pointed out that in recent years, Enel Chile has increased its dividend policy, in addition to selling assets, such as Arcadia in 2023. “This, in addition to a solid operational performance, has allowed it to sustain good dividends in recent years.” Qprojected that Enel Chile’s stock will reach a DY of 5.2% for the period.

In the case of Aguas Andinas, The stabilization of results would be one of the company’s main drivers to deliver higher dividends. Serrano projected the stock to reach a DY of 12.4%.

Along with this, Tolosa stated that “dividend policies will vary as the economic environment and the rate environment relax, making it more likely that the cost of financing will be cheaper for companies,” he concluded.