Europe’s Got Plenty Of Room To Raise Its Dividends

Luke Suddards

7 days ago1:13 min

Europe’s Got Plenty Of Room To Raise Its Dividends

If dividends are what you’re after, Europe may be worth a look. Its average dividend payout ratio (light blue line) – i.e. the amount of dividends paid from a company's profits – is near levels seen during the European debt crisis of 2011 and the global financial crisis in 2008-09. In other words: super low. And that suggests there’s plenty of room for dividends to be raised.

And you could look to financials, commodities, and energy to find shares worth snapping up. Banks’ prospects are on the up, with interest rate increases helping grow their margins. The continent’s energy and other commodity-related companies are boasting better-looking balance sheets, having slimmed down their big project expenditures over the years in a move that has led to reduced supply and higher commodity prices

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