Iberdrola: thousands of inherited shares and the dilemma of selling or buying more

Iberdrola at all-time highs: the inherited portfolio nobody touches

Does it make sense to hold thousands of Iberdrola shares bought over decades, or is it better to sell them and switch to a global fund? The question runs through a portfolio that began as a monthly purchase from parents to children and which today, with the utility at a record high, faces the classic dilemma: keep collecting dividends or finally diversify. The stock has gone from being an inertia-driven inheritance to an asset some consider the best on the Ibex.

From monthly purchases to a record market cap

The story begins with a very Spanish habit: buying a handful of shares every month, without looking at the price, and letting them sit. That habit, maintained for decades, has turned a modest position into **thousands of Iberdrola shares**. The result is a portfolio that, according to its owner's own account, today generates enough dividends to exceed the average Spanish salary. Luck, he admits, was choosing the utility and not Telefónica.

The stock has climbed to **record highs** and, according to one forum user, is one step away from becoming the world's largest utility by market capitalization. The thread mentions a **25 euro** price target attributed to Goldman Sachs. The company combines regulated business in several countries, grid investment and a shareholder payout policy that, as stated in the conversation, has been rising for years. The last dividend increase was **8.7% per year**, according to one participant.

The dividend as the argument and diversification as the doubt

The main pillar of the bullish thesis is the dividend. Some take it in shares to increase their position without going through cash. The company, they argue, has geographically diversified revenues, which protects it from local political decisions. Compared with Endesa, more exposed to the Spanish market, Iberdrola operates in several countries, as highlighted in the thread. That diversification is what some consider the best argument for not selling.

But the initial question was not rhetorical: **sell or buy more?** The most repeated answer is to add, with an eye on a correction that would allow buying at lower prices. The stock is trading at highs and some expect a pullback to the **16-17 euro** zone to increase positions. The patient investor's strategy clashes with that of those seeking quick returns.

The wheel strategy and its risks

Among the methods that have appeared in the conversation is the systematic selling of put and call options, known as the wheel strategy. It involves collecting premiums while waiting for the stock to rise or hold steady. If it falls, the shares are bought; if it rises, calls are sold and the cycle restarts. The appeal is obvious: recurring income without selling the asset. The problem, more technical voices warn, is the asymmetry of risk: you earn a limited premium but assume a potentially unlimited decline.

The defense of the strategy rests on Iberdrola's historically low volatility, according to one participant. It is not a tech company, but its status as a defensive stock makes it suitable for this kind of trading, always according to that opinion. The discussion drifts toward whether retail investors should bother with options or just stick with the dividend and wait.

The political factor and Brazil's shadow

The share price also reacts to external factors. The mention of **Lula** and the situation in Brazil looms over the company, which has a significant part of its business in the South American country. Any political or regulatory instability there translates into pressure on the stock, as commented in the thread. The conversation speculates that calm in Brazil would clear the way for a positive week.

The stock's daily behavior shows a curious pattern: it falls in the morning and recovers in the afternoon, as observed in the thread. Intraday movements are interpreted as indecision, but the underlying trend remains bullish, in the participants' view. The company is described as a motorbike that diversifies country risk and invests in grids with guaranteed returns.

The final decision: hold or transfer?

The proposal to sell the thousands of shares to buy an MSCI ACWI fund has not found many supporters. Most choose to hold, collect dividends and, at most, add during corrections. Decades of inertia have worked and nobody wants to break them. The comparison with Telefónica, which could have been the wrong choice, hovers as a reminder that luck also counts.

In the end, the question remains up in the air. The utility defends its status as a defensive stock, with regulated business and growing dividends. Those who have been in for years see no reason to leave. Those watching from outside wait for a drop that never comes. Meanwhile, the stock keeps smashing ceilings and shareholders keep collecting. The irony is that the most profitable decision, in this case, was not making any decision.