Telefónica's historic decision to cancel its 2012 dividend has paved the way for other Ibex companies to follow suit. These companies are trying to lighten the burden of financial commitments that they made during years when they had more cash on hand.
At least ten companies listed on the Ibex are locked in to shell out more than 80% of their profits in order to pay the dividends that they have promised shareholders.
Construction companies and banks are the companies most likely to follow in Telefónica's footsteps.
Obviously, cut dividends would be painful for both CEOs and shareholders, but the decisions are necessary for earning respect from the markets and helping to build a viable future for Spain.
