3 Stocks BlackRock Is Betting On for Long-Term Gains

BlackRock targets high dividend and growth stocks offering income with upside potential.
The firm focuses on stable businesses with recurring revenue and strong cash flow visibility.
It invests in undervalued companies supported by long-term trends like 5G and digitalization.

is the world’s largest asset manager. No other firm comes close. It manages about $11 trillion, more than the GDP of every country except the United States and China, and it holds stakes in 88% of the 500 largest U.S. companies. The firm started in 1988 in the domestic market and later expanded globally.

Now, BlackRock has increased its holdings in Spanish stocks, especially in some Ibex 35 companies such as Banco Sabadell, Telefónica, Aena, and Cellnex, with a total investment of 680 million euros.

Let’s look at why the fund manager chose these companies. This is not a buy recommendation, only information and data. At the end, we will also look at upcoming dividends.

1. Cellnex

BlackRock has increased its stake in from 4.96% to 5%. The stock offers a dividend yield of 1.33%. For 2026, earnings per share (EPS) are expected to grow by 42.4%.

It is a strong and defensive business. The company operates telecom towers that generate steady, long-term revenue. It is a leader in Europe and benefits from rising data demand driven by 5G and digitalization.

The shares are trading at a 15.3% discount to the fair value. 

Source: InvestingPro

2. Telefónica

BlackRock’s stake in has risen from 5.01% to 5.94%, the highest level since December 2017, when it exceeded 6%. On June 18, it will distribute €0.1215 per share to its shareholders; to be eligible to receive it, shares must be held before June 16. The company’s dividend yield is 6.26%.

Source: InvestingPro

For the 2026 forecast, EPS (earnings per share) is expected to increase by 9.7% and revenue by 3.1%.

Relatively stable cash flow. The telecommunications business (fiber, mobile, digital services) is considered a source of recurring revenue.

Strong business in key markets. Spain, Brazil, and Germany remain pillars. Brazil is growing above inflation.

Focus on technology (5G and fiber). Investment in 5G and fiber networks is key to the future and thus maintains long-term competitiveness.

Its shares are trading at a 24.2% discount to fair value, or the price based on fundamentals.

Source: InvestingPro

3. Banco Sabadell

BlackRock has increased its stake in Banco de Sabadell (OTC:BNDSY) from 7.22% to 8.19% and is now the bank’s largest shareholder, ahead of the Swiss insurer Zurich (4.95%).

The dividend yield is 6.88%. In total, it is expected to distribute €2.5 billion to its shareholders, likely by the end of May.

Source: InvestingPro

Operating results and strategy. Sabadell continues to generate solid profits and has reduced problem assets on its balance sheet. The bank has clear strategic objectives to improve profitability and capital through 2027.

The bank has proposed share buybacks and special dividends tied to corporate events (such as the sale of its subsidiary TSB), which attracts investors seeking attractive passive income.

Its shares are trading at an 8.7% discount to fair value, or the price based on fundamentals, which stands at €3.49.

It has the support of the market, which sets its average target price at €3.46.

Source: InvestingPro

 

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counsel or recommendation to invest as such, it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset is evaluated from multiple perspectives and is highly risky and therefore, any investment decision and the associated risk remain with the investor.