Iberdrola Has a Better Earnings and Dividend Outlook Than Most Peers

Iberdrola is the second-biggest integrated utility in Europe after Enel. Besides its domestic Spanish market, Iberdrola has strong exposure to the United Kingdom since the acquisition of Scottish Power in 2007. It is the European utility with the largest exposure to the United States thanks to its wind development and the acquisition of UIL in 2015. Its US assets are grouped in 81.5%-owned Avangrid. In May 2024, Avangrid's board of directors accepted an all-cash takeover bid from Iberdrola at $35.75 per share involving $2.6 billion of cash outlays. The transaction is expected to close by the end of 2024. We calculate that it will be EPS-accretive by 2%.