Saturday, March 2

Allianz GI believes that the payment of dividends in Spain could grow up to 20% in 2022

Spain is thus within the ‘top 5’ of Europe and in the ‘top 3’ of the euro zone in terms of dividend yield. In Britain, by contrast, the dividend increase is likely to be more modest, averaging around 4% due to “continued Brexit-related burdens on the UK economy.”

“Just like in the past, dividends contributed substantially to equity returns, especially in Europe,” said Hans-Jörg Naumer, director of Global Capital Markets & Thematic Research at Allianz GI.

The distribution of dividends registered a sharp drop due to the coronavirus crisis in 2020, but this year equity investors “can expect a rain of dividends”: the firm expects an increase of 8% to 410,000 million euros in total .

“At around €378 billion, dividends in 2021 returned to the trend that had been maintained until 2019. And in 2022, they are likely to continue to rise, reaching a new record level of around €410 billion,” said the director of European equity investments at Allianz Global Investors, Jörg de Vries-Hippen.