BBVA: 5% Dividend Yield Bank Stock With An Improving Balance Sheet And Growth

There are several financial stocks based in the U.S. with long histories of dividend increases. But you won’t find any European banks on the list of Dividend Achievers, a group of 264 stocks with 10+ consecutive years of dividend raises.

For investors willing to consider international stocks, there are some high-yield opportunities outside the U.S. Several European banks have much higher dividend yields than their U.S. counterparts.

For example, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) has a high dividend yield of 5%.

has an improved balance sheet, generates steady profits, and rewards shareholders with a hefty dividend yield.

The stock is up significantly in 2017, reflecting its improving fundamentals. This article will discuss why BBVA could be an attractive stock for dividend investors.

Business Overview

BBVA has a very long operating history. It was founded all the way back in 1857. Today, it operates as a global, integrated financial services company.

It provides a full range of banking, and financial products and services. It is based in Spain, with a huge presence in Europe. It is also the largest financial institution in Mexico, and also has significant operations in Latin America, South America, and the U.S.

Lastly, BBVA’s Asia operations include branches and representation offices in China, Hong Kong, India, Indonesia, Japan, Singapore, South Korea, Taiwan and the United Arab Emirates.

BBVA Geography

Source: Investor Factsheet

BBVA also has a 49.85% ownership stake in Garanti Bank, the second-largest bank in Turkey by assets.

In all, BBVA has 8,500 branches, more than 31,000 ATMs, and has 70 million customers. It operates in 35 countries across the world.

Last year was a very strong one for BBVA. The company earned $3.89 billion in 2016, a 32% increase from 2015 in euros, and its highest profit total since 2010.

Earnings growth was due to higher interest income, moderating expenses, and lower impairment losses.

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Disclosure: Sure Dividend is published as an information service. It includes opinions as to buying, selling and holding various stocks and other securities.

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