European dividends anticipated to hit record high in 2022

8% growth

Allianz Global Investors is anticipating an 8% growth in European dividends in 2022, which will lead them to hit record highs.

Dividends took a hit in 2020 due to coronavirus. However, last year shows companies within the MSCI Europe index raised their payouts to €378bn, according to the company's research. AllianzGI estimates companies are likely to increase dividends again and they will hit approximately €410bn. Dr Hans-Jörg Naumer, head of global capital markets and thematic research, said: "As the world recovers from the effects of the pandemic, dividends continue to make a substantial contribution to the return on equities, especially in Europe." He went on to note that average equity volatility of di...