Issues to be taken into account on BBVA – Investing.com Spain

There are interesting issues to comment on BBVA (MC:). Among other aspects we’ve got your results, your change in the dividend policy, the target price could be achieved in the next few months of their trading, analysis, and scenario.

The BBVA has awarded his best from seven years ago, achieving 3.475 million last year, which represents an increase of 31.5 per cent, and that the market forecast was not small (+29%). Among other reasons, has had to see increased business in markets such as Turkey and Mexico.

In terms of dividend, the BBVA confirmed that from this year he returns the distribution of 100% of the dividend in cash. In this way, it regained its remuneration policy prior to the year 2013, since in that year he added the dividend to be flexible. The next month of April will be paid to shareholders the last flexible dividend, which will amount to € 0.13. Since January 1, the entity will perform only two payments in the year and in addition to cash, probably in the months of April and October, with a pay-out (percentage of the profit that a company goes via dividends among its shareholders) estimated at 35%-40%.

In the target price estimated for the twelve months ahead, there is no clear consensus in the market. The majority opinion is that would be around 7 euros. The pessimists don’t see too much travel to their actions, although on the opposite side is what they see coming in at eur 7.50.

One of the issues that will need to be watched closely is the evolution of two currencies, namely, the and the , basically because of the exposure that a bank has in these two countries, and because in the worst case would impact negatively on the quarterly results.

If you look at the chart, you can appreciate how the resistance of the 6,55 euros formed in April of 2016 is turning out to be a retaining wall. The price always comes (October 2016, November 2016, December 2016, January 2017) is unable to break it, causing cuts to the poor.

the First idea to take into consideration: updating the scenario, the resistance is reajustaría to 6,62 euros, so that we will not have more strength bullish as long as the price fails to break 6,62 euros. Not only resistance, if you see this second graph you will see that in addition, it is also a Fibonacci level

Second idea to keep in mind: in the short term without weakness while the price will keep above the 5,67-5,69 euros.

Your Beta is 1,43% so that the movement of the shares of BBVA in the same direction as that of its benchmark index, and with higher volatility. Your Var is 0,14%, so that for every action you risk a 2.23 percent daily. The annual volatility registered to 30 sessions is 22%, indicating a low level.