Regardless, this annual profitability is improved each year with the distribution of dividends from the companies that make up the index. In the case of the EuroStoxx 50, this additional income is a faithful reflection of the most widespread remuneration policy on the Old Continent and it is estimated that in 2025 it will reach a profitability of 3.5%the highest since 2016 despite the sharp revaluation of the stock market since then.
And since 2020, selective companies have improved their compensation in absolute value year after year. Extract from the EuroStoxx 50 Dividend index, which calculates and adds the gross dividends paid cumulatively each year, this year on 150 pointsa level which, two months from the end, exceeds the previous year and which is highest since 2008when the benchmark closed with 158 points. In other words, this could still be the best year of the entire historical series of the index in this context.
Indeed, Janus Henderson pointed out that at the global level, dividends paid in the second quarter of the year had increased by 5.8% until a historic record of 606.1 billion of dollars. 8.2% without taking into account the effect of exchange rates. “Globally, 92% of companies have increased or maintained their dividend distributions and, in this sense, Europe dominates the rest of the geographies, with record dividends in France, Italy, Switzerland and Spain “, they explain.
It is true that this quarter tends to be the most important for Europe since many companies pay their only annual dividend on these dates. THE 204.6 billion distributed represents a new quarterly record after an increase of 7.7%. From Janus Henderson they indicate that “more than half of this growth came from the banking sector, which benefited from the high rate environment”. “90% of companies have maintained or increased their payment,” they add. Italy and Spain saw the strongest growth, according to their data.
Which companies are most responsible for this additional profitability within the EuroStoxx 50? There is even 18 companies where analysts predict compensation above 5% in anticipation of next year. The most notable in this context are Volkswagen, Intesa Sanpaolo, Nordea, BBVA and BNP Paribas.
The German automaker is being severely penalized on the stock market due to intensifying Chinese competition and reductions in sales forecasts they and analysts are making. Since the start of the year, its shares have fallen by almost 20%, which in turn has increased the profitability of its dividends. up to 9.3% by 2025while he should pay 8.43 euros per share. The sharp fall in the stock market led it to be listed at only 3.3 times the PER (times the profit reflected in the share price).
Also in the about 9% In terms of profitability, Intesa Sanpaolo has a very different story from Volkswagen since in recent years it has been one of the great beneficiaries of the high interest rate environment, which has been reflected in the stock market , where this year it has already revalued by almost 50%, reaching 2008 highs. These additional revenues have allowed it to continue increasing the remuneration of its shareholders to 0.35 euros.
The third largest payment is defended by Nordea. The Finnish entity is close to 9% profitability in a context of high interest rates. The fourth and fifth places are also reserved for the banking sector, where the first Spanish name appears, BBVA. The Basques, with almost 8% of estimated profitability for 2025, this year they suffered a particular stock market situation, in which they fell behind as the least bullish value in the sector in Spain after launching a public purchase offer on Sabadell which would force them to increase their capital . Recently, it also increased its first interim dividend by 81%, to 0.29 euros, the largest in its history.
