European dividend payouts forecast to rise by 6.5% in 2024
Payouts reached record levels last year, with companies in the broad MSCI Europe index paying a total of about €407bn. In 2025, the total sum is expected to hit €460bn.
Payouts reached record levels last year, with companies in the broad MSCI Europe index paying a total of roughly €407bn. In 2025, the total sum is expected to hit €460bn — up 13% from 2023 — according to Allianz GI forecasts.
Dividend yield is also following a similar growth trajectory, the company found. It stood at just under 3.5% at the end of 2023, and is expected to rise to more than 3.6% by the end of this year.
However, the yield figure is even higher for UK companies included in the MSCI index, with 4.2% yield achieved in 2023 and 4.6% expected for 2024.
FTSE 100 dividend forecasts fall 10% for 2023 and 2024
The top companies in the index in terms of dividend yield remain those based in the Nordics, despite expected declines from 7.2% in 2023 to 6.4% in 2024.
Jörg de Vries-Hippen, head of investments equity, Europe at Allianz GI, said the recent increase in dividend payouts is a continuation of the trend of rising payouts, which was only interrupted in 2020 due to the pandemic.
«The outlook also remains positive: dividend payments are expected to grow both this year, and in the year ahead,» he said.
However, portfolio manager Grant Cheng noted there are «strong differences» at sector level, which he said argues in favour of diversification and selection when making investment decisions. Dividend payouts are rising particularly in the financials and consumer discretionary sectors, he added.
The firm also highlighted the role dividends play in a company's overall performance. Over the last 40 years, dividends contributed almost 36% of the
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