Portuguese dividends among the most attractive in Europe

  • ECO News
  • 25 January 2021

Portugal remains one of the countries where companies have the most attractive dividends. Allianz estimates that European companies distribute more than 300 billion euros to shareholders.

Dividends from Portuguese companies remain among the most attractive in Europe, according to an analysis by Allianz Global Investors. With a dividend yield of around 3.5%, Portugal ranks fifth only behind Russia (6%), the UK (4.5%), Norway (4%) and Spain (3.5%).

There is no change from last year’s Allianz Global Investors ranking, although dividend rates have fallen significantly. In Portugal’s case, the dividend yield went from 4.5% in 2020 to 3.5%.

According to Allianz’s analysis, companies in the MSCI Europe share index are expected to distribute 330 billion euros in dividends this year, an increase of almost 14% on the amount distributed in 2020 (around 290 billion euros).

Still, this is not enough to compensate for last year’s 20% drop compared to 2019, when 360 billion euros was distributed.

Allianz explains that many companies were prevented from remunerating shareholders because of the State aid they received during the Covid-19 pandemic. It adds that pre-crisis levels will not be reached in 2022.