Sabadell: Buy ahead of a 14% dividend?

Banco De Sabadell, S.a

26/05/2026 10:08

** Banco Sabadell SABE.MC is set to pay a €0.50 special dividend this week, a hefty ~14% yield, with Citi saying debate is building on whether the stock is an attractive entry point

** Some investors expect the share price drop on the May 27 ex-date to be less than the dividend, citing a ~10% peer discount, while others see gains offset by target price cuts once the payout is stripped out, according to the brokerage

** A large retail shareholder base (over 40%) will receive €1 billion from the payout, which could support shares if proceeds are reinvested, Citi says, though the buyback is 93% complete

** Citi flags softer fundamentals, with Sabadell among few European banks seeing 2027 EPS downgrades, due to weaker loan growth, lower fees and higher provisioning

** Sabadell up 3.9% YTD, against a 6.1% gain for the STOXX Banks index .SX7P

** The dividend follows the sale of British bank TSB to Santander SAN.MC

** A majority of analysts, including Citi, rate Sabadell "hold" or neutral (11 of 20) - LSEG

(Reporting by Danilo Masoni)

((Danilo.Masoni@tr.com; Reuters Messaging: danilo.masoni.thomsonreuters.com@reuters.net/))