Dividends will take time to return to their pre-crisis level. They are expected to rebound 15% to 330 billion euros this year, against 360 billion paid in 2019, according to the annual study of Allianz Global Investors. Europe remains the most generous region in the world to its shareholders.
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, 15% more than last year, estimates asset manager Allianz Global Investors in its latest annual survey. Far from the record of 360 billion established in 2019: ” The recovery will be slow, 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 payments slumped 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.