Iberdrola, from 3.41 to 20.05 euros: patience that pays off

Iberdrola: from 3.41 to 20.05 euros, the patience that pays off

When Iberdrola's share price hovered around 3.4 euros, the consensus was cautious: some expected a drop to 2.8, others pointed to the political risk in South America and ACS's exit. But one investor decided to go against the grain, buying 3,000 shares at 3.41 euros and waiting. Fourteen years and several cycles later, the stock trades near 20 euros with the dividend always paid on time. The bet on wind power generation and geographic diversification (Spain, France, the United Kingdom, Latin America and the United States), which basic analysis saw as solid, held up better than the forecasts.

The purchase came when antiestéticar was at its peak and the stock had just fallen to 3.39. The buyer himself admitted weeks later how unnerving it was to see closes at 3.42. But the dividend never failed and the price began to climb: 4.25, 6.05, 7.07. With every update he kept collecting, until the price topped 20 euros. Then he sold part of his stake to reinvest, using Brexit as the excuse for the rotation.

• 3,000 shares at 3.41 euros during the panic phase.
• Price evolution: 3.39 (low), 3.42, 4.25, 6.052, 7.072 and 20.05 euros.
• Dividend maintained and increased throughout the entire period.

The warning from those who distrust the moves of top management remains (the insider buying during ACS's exit could have been cosmetic). And there is the uncomfortable detail: the one who sold at 20 euros was also right, because patience is not dogma. The lesson, perhaps, is that panic can be an entry point, and the tedium of collecting dividends, an excuse to wait.