Europe: the destination for income in a rising rate environment

Better dividend exposure

Quality dividend paying European equities look like an attractive option for income seekers at the moment.

Simply put investors can come to Europe and invest in high quality, unique and globally leading companies trading at favourable valuations and achieve a significant uplift over the MSCI USA dividend yield of 1.6%, without giving up on quality. Even more compelling in this new environment is the alignment between what Europe does well and what works in a rising interest rate, inflationary and capex-led environment. The MSCI Europe ex-UK index gives investors nearly double the exposure to consumer staples and industrials, and some 40% more exposure to financials than MSCI USA, at 15% vs 11...