My video editor Milos is on holiday in Spain. In order to finance his trip, he is shooting a video about Endesa, a Spanish energy provider. Apparently, the company is cheap, because their value ranks are excellent.
This isn’t a dirty trick by Milos, but I suspect a lot of dirty energy at Endesa. And indeed, Endesa is generating a third of its electricity with coal and half of it with nuclear power. No wonder that Endesa has an almost unbeatable dividend return with an Obermatt rank of 92 at the time of writing.
Of course, I am against nuclear energy and even more against burning coal. But I also drive an electric car and Spain is located in the sunbelt of Europe. It is quite possible that ten years from now the majority of Endesa energy comes from the sun. Good reasons for a long-term investment.
Above all, however, I think that European energy suppliers of the older generation are being over-punished today. Should I not buy the Endesa stock simply because it was thought decades ago that the energy issue would be solved with nuclear power plants?
Mankind has been wrong before, no need to be resentful. The question today is what will the future look like for Endesa. A visit to their website reveals that they are serious about renewable energies and that they are promoting electromobility.
I buy 250 Endesa shares for a total of around USD 4,500.