Posted on Jan 25, 2021 9:00 AMUpdated Jan 25, 2021, 9:17 AM
No “V” recovery for dividends in Europe. European companies are expected to distribute around 330 billion euros to their shareholders this year in this form, up 15% from last year, according to asset manager Allianz Global Investors in its latest annual survey. Far from the record of 360 billion established in 2019: ” The recovery will be sluggish, dividends will not return to their pre-crisis level before 2022 at the earliest », Warns Hans-Jörg Naumer, Head of Capital Markets Research at Allianz GI.
The coronavirus crisis has left its mark. Dividend payouts plummeted 20% last year in Europe to € 290 billion. A historic fall. In general, companies are doing everything possible to maintain or even increase their dividend, while taking a much more flexible approach to share buybacks.