Pocket Option: Stocks with the Best Dividends

10 min to read

11 April 2025

10 min to read

Stocks with the Best Dividends: Profitable Strategies for Argentine Investors in 2025

Discovering stocks with the best dividends is essential for building an investment portfolio that generates consistent passive income. In this analysis, we detail the best options in the Spanish market with a focus on Argentine investors, evaluating returns, sustainability, and growth prospects for 2025.

The value of dividend stocks in the current economic context

In a financial environment characterized by volatility and uncertainty, stocks with the best dividends represent an attractive refuge for investors seeking to combine capital appreciation with stable income flows. For Argentine investors, who have historically faced high levels of inflation and depreciation of their local currency, exposure to Spanish companies that distribute solid dividends offers an opportunity for significant diversification and wealth protection.

The Spanish market, with its close cultural and commercial relationship with Argentina, presents particular characteristics that make it especially interesting for Latin American investors. IBEX 35 companies have traditionally maintained generous dividend policies compared to other European markets, with yields that frequently exceed 4-5% annually.

At Pocket Option, we have observed a growing interest among Argentine investors in stocks with good dividends from the Spanish market, particularly in sectors such as banking, energy, telecommunications, and infrastructure. These sectors not only offer attractive dividends but also provide exposure to more stable economies and strong currencies, functioning as a natural hedge against the depreciation of the Argentine peso.

Key factors for identifying high-dividend stocks

Selecting the stocks with the best dividends requires analysis that goes beyond simple current yield. A common mistake among novice investors is to be seduced solely by high yields without considering the sustainability of these payments in the long term.

Factor	Importance	Recommended Metric
Dividend payout ratio	High	40-60% for most sectors
Dividend history	High	Minimum 5 years of consistent payments
Dividend growth	Medium	Annual increase higher than inflation
Free cash flow	High	Positive and stable
Dividend yield	Medium-High	Higher than 3% annually

For Pocket Option investors interested in building a dividend-oriented portfolio, we recommend paying special attention to the dividend payout ratio. This indicator, which measures the proportion of profits that the company allocates to dividend payments, is crucial for evaluating the sustainability of payments. An excessively high ratio (above 80%) could indicate that the company is not reinvesting enough in its growth or that dividends could be compromised if profits decrease.

The role of dividends in different market phases

Stocks with higher dividends tend to behave differently depending on the economic cycle and market conditions. This behavior makes them valuable components for an adaptive investment strategy.

Market Phase	Typical Behavior	Recommended Strategy
Strong bull market	Lower relative performance than growth stocks	Maintain base exposure and rebalance
Bear market	Greater stability and lower volatility	Increase exposure as defense
Inflationary environment	Partial protection if dividends grow	Focus on companies with pricing power
Rising interest rates	Downward pressure due to competition with bonds	Selectivity and focus on dividend growth

In recent years, we have observed at Pocket Option how Argentine investors have increased their allocation to stocks with more dividends during periods of local economic uncertainty. This strategy has proven to be particularly effective in preserving capital in real terms while generating predictable income flows in strong currencies.

Spanish sectors distinguished for their dividends

The Spanish market has specific sectors that have historically maintained attractive dividend policies. For Argentine investors looking for stocks with high dividends, these sectors deserve special attention.

Sector	Average Yield	Advantages	Considerations
Banking	5-7%	High yields, exposure to EUR	Sensitivity to economic cycles and regulation
Energy	4-6%	Stable cash flows, regulated businesses	Energy transition, regulatory risks
Telecommunications	4-5%	Recurring revenues, low volatility	Intense competition, high infrastructure investments
Infrastructure	3-5%	Long-term contracts, predictable income	Sensitivity to interest rates
Real Estate (SOCIMIs)	4-7%	Mandatory distribution of profits	Exposure to real estate cycles

The Spanish banking sector, after years of restructuring and consolidation following the financial crisis, has emerged stronger and with more sustainable shareholder remuneration policies. Entities such as CaixaBank, BBVA, and Banco Santander have resumed attractive dividend policies, combining cash payments with share buyback programs.

At Pocket Option, we see special value in Spanish energy companies, which combine regulated distribution businesses with growing exposure to renewable energies. Companies such as Iberdrola, Endesa, and Naturgy offer dividend yields above the European average, with a clear commitment to the sustainability of these payments in the long term.

The special case of SOCIMIs

The Sociedades Anónimas Cotizadas de Inversión Inmobiliaria (SOCIMIs), Spanish equivalents of American REITs, deserve special mention for investors looking for stocks with good dividends. These entities are legally required to distribute at least 80% of their profits from rents and 50% of the capital gains generated, making them naturally dividend-oriented vehicles.

Companies such as Merlin Properties, Colonial, or Lar España have consistently offered dividend yields above 4%, also providing exposure to the Spanish real estate market, which has shown a sustained recovery in recent years.

The best dividend stocks in the Spanish market for Argentine investors

Based on the analysis of our Pocket Option experts and considering factors such as current yield, sustainability, potential growth, and accessibility for Argentine investors, we present a selection of the stocks with the best dividends in the Spanish market in 2025.

Company	Sector	Dividend Yield	Payout Ratio	Dividend CAGR (5 years)
Enagás	Energy (Gas)	8.2%	75%	2.5%
Red Eléctrica	Utilities	6.5%	70%	2.8%
CaixaBank	Banking	6.0%	55%	7.3%
Telefónica	Telecommunications	7.8%	65%	-1.5%
Iberdrola	Energy	4.3%	60%	6.2%
Merlin Properties	Real Estate (SOCIMI)	5.4%	80%	3.5%
ACS	Construction	7.3%	65%	4.8%

We highlight the case of Iberdrola, which although offering a lower dividend yield than other options on the list, presents the most balanced profile in terms of sustainable growth, financial stability, and future prospects. The company has increased its dividend at an annual rate above 6% over the last five years, and its ambitious investment plan in renewable energies positions the company favorably to continue this trend.

CaixaBank represents another attractive option, with a diversified business model and a strong position in the Spanish retail market. After the merger with Bankia, the entity has strengthened its profit-generating capacity and established a clear dividend policy, with a target pay-out of 50-60% of profits.

Practical strategies for investing in dividend stocks from Argentina

For Argentine investors interested in building a portfolio of stocks with higher dividends from the Spanish market, there are several strategies and practical considerations that should be taken into account.

Tax and operational aspects

Taxation is a crucial aspect that is frequently overlooked when investing in international markets. Dividends from Spanish companies are subject to a withholding tax of 19% for non-resident investors, although this percentage may vary according to existing double taxation agreements.

Aspect	Details for Argentine Investors	Recommendation
Tax withholding	19% at source (Spain)	Verify possibility of compensation in Argentina
Transaction costs	Variable according to broker	Compare commissions for international operations
Currency conversion	Commissions and exchange spread	Consider brokers with multi-currency accounts
Securities custody	Regulation by CNMV (Spain)	Verify asset protection and account segregation

At Pocket Option, we offer specific solutions for Argentine investors who want to access the Spanish market in the most efficient way possible. Our platform allows opening accounts in euros and operating directly in European markets without the need for multiple currency conversions, significantly reducing transaction costs.

For investors looking to maximize the tax efficiency of their investments in stocks with high dividends, we recommend considering structures such as investment accounts in jurisdictions with favorable tax treaties or specific vehicles that allow optimizing the tax burden, always within the applicable legal framework.

Portfolio construction strategies with dividend stocks

The effective incorporation of stocks with more dividends in an investment portfolio requires a strategic approach that goes beyond simply selecting stocks with the highest yields.

Sector diversification: Avoid concentrating your investments in a single sector, even if it offers the highest dividends at a given time.
Balance between current yield and growth: Combine stocks with high current yields with others that offer sustainable dividend growth in the long term.
Consideration of the investor’s life cycle: Adapt the proportion of dividend stocks according to your life stage and current income needs.
Strategic reinvestment: Consider automatically reinvesting dividends to take advantage of compound interest, especially in accumulation phases.
Sustainability monitoring: Periodically review the business fundamentals that support the dividend payments of your investments.

A strategy that has proven effective for Argentine investors at Pocket Option is the construction of a portfolio in three dividend levels:

Level	Characteristics	Suggested Proportion	Examples (Spanish market)
Stable base	Moderate dividends (3-4%) but highly sustainable with consistent growth	40-50%	Iberdrola, Red Eléctrica
High yield	High dividends (5-7%) with reasonable sustainability	30-40%	CaixaBank, Enagás
Opportunistic	Very high dividends (+7%) or special situations	10-20%	Telefónica, ACS

This approach allows capturing the benefits of stocks with the best dividends while mitigating the risk of concentration and establishing a balance between current income and future growth.

The future of dividends in the Spanish market: trends and perspectives

For investors with a long-term vision, it is essential to consider the structural trends that could affect stocks with good dividends in the coming years. The Spanish market, traditionally generous in terms of profit distribution, is experiencing significant transformations.

Consolidation in mature sectors: Banking, telecommunications, and traditional energy continue consolidation processes that could affect dividend policies.
Energy transition: Companies in the sector are allocating increasing amounts of capital to investments in renewables, which could temporarily moderate dividend growth.
Accelerated digitalization: Traditional sectors face competitive pressures from new technological entrants, requiring greater defensive investments.
Regulatory pressure: Particularly in sectors such as banking and energy, where regulators are showing greater scrutiny over capital distribution policies.
Sustainability and ESG: Growing importance of environmental, social, and governance factors in corporate decisions, including dividend policies.

At Pocket Option, we anticipate that Spanish companies will continue to offer attractive dividend yields compared to other developed markets, but with an increasing differentiation between:

Companies in mature sectors with low investment needs, which will maintain high payments to attract investors.
Companies in transformation, which might temporarily moderate dividends to finance their adaptation to new business models.
Emerging companies in growth sectors, which will begin to establish dividend policies as they reach operational maturity.

For Argentine investors, this evolution offers interesting opportunities to build diversified dividend portfolios that combine current income with potential for future appreciation.

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Conclusions: Building a dividend strategy adapted to the Argentine investor

The stocks with the best dividends in the Spanish market represent a strategic opportunity for Argentine investors seeking to combine recurring income with international diversification. Throughout this analysis, we have identified specific sectors and companies that offer attractive risk-return profiles, as well as practical considerations for implementing these investments efficiently.

Dividends, beyond providing predictable income flows, offer an additional dimension of return that acquires special relevance in volatile economic environments such as Argentina’s. The financial discipline implied by the commitment of companies to sustainable dividend policies frequently translates into more prudent and long-term oriented corporate management.

At Pocket Option, we recommend Argentine investors adopt a structured approach to incorporating stocks with high dividends into their portfolios:

Define clear objectives: Are you primarily seeking current income or long-term growth with a dividend component?
Evaluate your tax profile: Consider the tax implications in both Spain and Argentina.
Build a diversified portfolio: Combine different sectors and dividend profiles.
Monitor fundamentals: Beyond current yield, regularly verify the financial health of companies.
Maintain flexibility: Be willing to adjust the strategy as market conditions and personal circumstances evolve.

The path to building solid wealth based on dividends requires patience, discipline, and a long-term vision. Investors who consistently manage to implement these strategies will be better positioned to navigate the particular economic challenges of the Argentine context, taking advantage of the opportunities offered by the Spanish market of stocks with higher dividends.

FAQ

What exactly are dividend stocks and why are they important for Argentine investors?

Dividend stocks are shares of companies that regularly distribute part of their profits to shareholders. For Argentine investors, these stocks are particularly valuable because they offer recurring income in strong currencies (such as the euro), protection against local inflation, and international diversification, which are critical elements considering the historical volatility of the Argentine peso and the national economy.

What is the difference between dividend yield and dividend payout ratio?

Dividend yield is the percentage that the annual dividend represents relative to the current stock price (dividend/price). The payout ratio indicates what percentage of net profits the company allocates to dividends. While the yield is useful for comparing different investments, the payout ratio is essential for evaluating the long-term sustainability of the dividend.

How do taxes affect Spanish stock dividends for an Argentine investor?

Dividends from Spanish companies are subject to a 19% withholding tax at source for non-resident investors. Argentine investors must also consider their declaration in Argentina according to local regulations. There is a treaty to avoid double taxation between Spain and Argentina that, when applied correctly, may allow recovery of part of the Spanish withholding tax or use it as a tax credit in Argentina.

Is it better to reinvest dividends or collect them as regular income?

The decision depends on individual financial objectives. Reinvestment leverages the power of compound interest and is ideal for investors in the accumulation phase or who don't need the income immediately. Collecting dividends is preferable for those seeking regular passive income or who are in the decumulation phase. At Pocket Option, we offer automatic programs for both options according to client needs.

How can I start investing in Spanish dividend stocks from Argentina?

To begin, you need to open an account with a broker that offers access to the Spanish market, such as Pocket Option. You will need to complete an identity verification process and transfer funds, ideally in euros to avoid multiple conversions. It is advisable to start with large-cap companies from the IBEX 35 that have established and transparent dividend policies, progressively diversifying your portfolio as you gain experience and knowledge of the market.