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A steady increase in dividends in Europe
According to the AllianzGI Dividend Study, dividends distributed in Europe are expected to grow significantly in the coming years. In 2024, dividends are expected to amount to approximately 440 billion euros, with an expected increase to 459 billion euros in 2025. This represents an increase of 4% compared to the previous year, highlighting a positive trend in the European economic landscape
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Prospects for the coming years
The report predicts that dividends will reach about 496 billion euros in 2026, an increase of 13% compared to 2024. In particular, Germany stands out with an increase in dividends from 57 billion euros in 2024 to 63 billion euros in 2025, and could reach 70 billion euros in 2026. Italy is also showing signs of growth, with distribution forecasts of 32 billion euros in 2025, up from 30 billion euros the previous year.
Growing sectors and market trends
The AllianzGI report highlights that the Information Technology and Healthcare sectors are among those with the highest dividend increases expected for 2025. Conversely, the energy sector could see a decrease in payments, while the financial sector remains the main dividend payer. This scenario suggests that investors should pay attention to industry dynamics to optimize their portfolios
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The role of dividends in capital income
In an economic environment where people are living longer and state pension funds are under pressure, dividends represent an important source of income from capital. AllianzGI’s Hans-Jörg Naumer points out that dividends can supplement income from work, offering financial support for expenses such as children’s education or holidays. In addition, dividends contribute significantly to the total return on equity investments, representing almost 39% of MSCI Europe’s total annualized return on equity investments over the past 40
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Conclusion
In summary, dividend forecasts in Europe indicate continued and sustained growth, with significant opportunities for investors. Diversification across sectors and attention to market trends will be crucial to maximizing returns. With a focus on dividends, investors can not only benefit from regular payments, but also contribute to their total return over the long term
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