Alphavalue | Our dividend estimate for 2022 is 30 billion euros higher than the figure expected for 2021 (+12%), but is still 60 billion euros lower than a year ago. Excluding the impact of the health crisis, we think that the dividends for 2022 could have reached 360 billion euros. A remarkable difference.
The fact dividends in the Pharmas and Food & Beverages sectors are increasing and are well covered for the next three years is not up for discussion. In such a way that their high yield actually reflects a buy at low share price levels (buy-in-the-dip opportunity) in those big, safe sectors.
The liking for dividends is to a great extent a reflection of the change in the liking for risk, but one can’t defy their quality as a safe cushion. The banking sector is the one with an amazing potential for dividends.