European companies rush to restore dividend

Posted on Feb 24, 2019 2021 at 16:57Updated 24 Feb. 2021 at 17:05

The horizon is clearing up in Europe for equity holders. The listed companies of the Old Continent have made resuming payments to shareholders one of their priority this year. More than half of the companies that published their annual results have already announced the reinstatement or increase of their dividend in 2021, according to Barclays. Attention often appreciated by investors. The jump of more than 10% of Fnac-Darty on the stock market, this Wednesday, testifies to this. The day before, the group had undertaken to pay a dividend of 1 euro per share and to aim for the distribution of 30% of its profit in the future.

A year after the start of the coronavirus crisis, companies want to show that they have already turned the page. No question of repeating the 2020 vintage and its fall by nearly a third of the amount of dividends paid in Europe. ” Companies that could have adapted to the context of the pandemic and aid played its role for the most vulnerable, emphasizes Emmanuel Cau, of Barclays. The crisis was managed much better than in 2008, the balance sheets are healthier, there was no major liquidity problem. Aggressive central bank policies have kept capital markets open and funding conditions at historic lows. Companies took the opportunity to gorge themselves on cash. ” Precautionary measures are no longer justified », He adds

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