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Europe And US, Both At Highs, Offer Dividends Of 2.4% And 1.3%

Two stocks at record highs, such as the Stoxx 600 and the S&P 500, have once again opened a gap in their shareholder remuneration, taking into account that this time the rise is accompanied by the growth of companies. And this is relevant to understanding the consistency of your dividends.

The Stoxx 600 has returned to 2.4% in its average performance, compared to 1.3% for the US index. It is the longest distance since the market crash of March last year, when shareholder remuneration soared to levels of 5% in Europe and 2.5% in the US, although of course, the fall in the price of Actions. Check here the calendar of upcoming dividends

“Accelerating sales growth coupled with cutting company costs is leading to improved Stoxx 600 earnings for the 2021-2022 cycle. Under our model, these stronger earnings will lead to higher dividends as well as in an increase in the number of share buyback programs that is currently expected, “they say from Bloomberg Intelligence .

What do these calculations imply? Experts believe that if a payout similar to that used by the Stoxx 600 firms were applied in 2019 -pre-pandemic-, the dividend would increase by about 82,000 million euros or, what is the same, 28% per above what is currently expected .

In some sectors, such as energy, banking and insurance or telecommunications, the largest continental companies would be offering returns of more than 7% at market prices, even reaching 16% in the case of some energy companies.

The biggest payouts
Mining, steel and oil companies are on their way to becoming the queens of the dividend in 2021 if the forecasts do not fail. Why? This exercise can generate historic gains for many of these firms. This is the case of Rio Tinto, which has the most profitable payment charged to this exercise of the entire Stoxx 600 table, if the Russian Evraz – also a steelmaker – is excluded, which is of Russian origin, although it is listed in London.

The mining company could shoot its dividend by 120% this year, up to 10.14 euros gross per share, which yields 13.7%. The explanation is that it will raise its net profit almost in the same proportion, above 20,910 million euros, a historical record, with the action in the zone also at highs. There is still time to catch this year’s pay, even if it’s just one day. On the 12th, the cut-off date has been set for the 4.6 euro dividend that arrives in September.

The world’s most famous port container company, Maersk , is next on the list. From its headquarters, Copenhagen, it will foreseeably distribute a dividend of 203 euros per share (it is trading at 2,400 euros per share, also in an area of ​​historical highs). This represents a return on your payments of 10.7% expected to be charged for this year, in which your earnings, following the aforementioned trend, will also be the largest in your history.

In addition, two other British and cyclical firms, BHP Group and Anglo American, place their payments among the five most profitable of the Stoxx 600, above 8.8%, together with Imperial Brands (see graph). Within this sector group, the Italian oil company Eni also stands out , with a payment that rents almost 8%, the Portuguese Galp , above 7%, and the French TotalEnergies .

In sixth position out of a total of 600 companies appears a Spanish one: Enagás , with returns above 8.5% for the next few years. What is your remuneration policy? Within the strategic plan that covers until 2026, the gas company has put on the table what its payments will be for this period. It will reach 1.70 euros per share charged to 2021 and will reach 1.74 in 2023, from which year it will remain on that same amount. Next December, the first of the two payments will be made, predictably, against this year, as usual.

ACS is the next Spanish in the ranking. The construction company chaired by Florentino Pérez is one of the companies that is still betting on the scrip dividend to pay back its shareholders – although it amortizes it with treasury shares.

The profitability of his payment is going above 7.5% this year, with a dividend expected of 1.71 euros gross. Part of its sneaking into the top 14 positions on the continental table is that its shares have lost 16% since January, at last summer’s levels. It is one of the three most bearish firms on the Ibex, behind Siemens Gamesa and Solaria -which falls by 31% -.

As a result of the launch of Línea Directa on the stock market, the profitability of the dividends given by its British peers , Direct Line and Admirall Group , has become more visible , also above 7%.

Among the most attractive banks is Intesa San Paolo , whose expected payment for this year -of 0.177 euros- rents 7.4% at current prices, taking into account that from autumn there will be a free pass for the payment of dividends.

Along with the Italian, there is the Nordic bank such as Swedbank , above 7% together with Crédit Agricole, or Nordea , at 6%, very similar to BNP Paribas and the insurer Swiss Re . In the insurance sector, the 6.2% of Generali stands out and more than 5% of Allianz -the most profitable of the Dax- and of the AXA gala.

The Ibex 35 currently has an average dividend yield of 2.6%. It continues to be the third most attractive stock exchange for this concept, only surpassed by the United Kingdom, where the London footsie offers 3.3%, and by the Milanese, where the average return reaches 3.2%. In the case of the German Dax Xetra, shareholder remuneration stands at 2.3% and in the Parisian Cac 40 it reaches 2.1% at twelve months from now.

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