Portugal has Europe’s most attractive dividends

  • ECO News
  • 17 January 2018

Dividends and more dividends... it is that time of the year when all investor can think about is dividends. This year, companies will be more generous towards shareholders. Portugal stands out.

Portugal will give the most attractive dividends in all of Europe, after a particularly positive year of 2017 for companies from the old continent. European listed enterprises will hand in record dividends to shareholders, according to an analysis from Allianz.

On average, it is expected that the Portuguese dividend yield reaches 4.47% of the value of the national listed companies. It is the largest dividend yield in all of Europe, according to the estimates from analysts from that investment institution. Portugal comes ahead of countries like Spain (4.47%) and Finland (4.02%). As for the United Kingdom, “traditionally the most important market for dividend hunters in terms of volume” comes in fourth place in the ranking, with a dividend yield of 3.98%.

“These averages are a very important benchmark and reveal a lot about each market’s valuation”, states Jörg de Vries-Hippen, manager of Allianz European Equity Dividend, suggesting that the Portuguese shares present a more depressing market valuation in comparison to the profit that will be distributed by shareholders.

Portuguese dividends are the most attractive in Europe

Source: Allianz Global Investors

In the Lisbon stock market, some companies are more generous than others: CTT‘s shares were one of the most attractive, with a dividend yield surpassing 13%. This takes place after a steep fall of the Post Offices’ securities that followed the profit warning issued in October during the presentation of the profit plunge in the first nine months of the year.