Structural disadvantages: in Europe, the dividends go back stronger

European companies will reduce due to the Corona-crisis, their dividends more than American. This was the result of Michael Bissinger, Analyst, DZ Bank, in its current study of the distributions of profits of the joint-stock companies. Since the beginning of the year the payout had been reduced expectations in Europe for the current fiscal year by about 25 percent. However, they are in the United States at virtually the same level.

Markus Frühauf

editor in the economy.

For this development, Bissinger makes the structural disadvantage of the European economy. The sector composition is much stronger in Europe in "old" industries, while in the United States, the technology dominate. Including information technology and communications, to which the iPhone manufacturer Apple, or the big Internet corporations such as Google, the parent company Alphabet, the Online retailer Amazon or from the software provider Microsoft.

These companies are poured out the most, and would have raised their dividends the most. However, these sectors have played in Europe only a subordinate role. Here, the industry would have raised the company dividends since the year 2003 the highest. However, these suffer from the Corona-quarantine and the recession now at the most.

payout barrier for banks

to be Added according to Bissinger, the European banking authority has advised against the institutions of dividend payments. This is equivalent to a distribution ban. And it is that the want to extend the overseer of the European Central Bank (ECB) to October current recommendation to the end of the year. In addition, financial had after watching Bissinger values from the year 2009, after the financial crisis, which impacted the dividend development in Europe.

In Europe, buried the financial values currently less than in the year 2003, in the United States, by contrast, significantly more. This is also reflected in the significantly higher stock market values of us banks, whose earning power of the European competitors is clearly superior. However, the big Wall Street had to in the first and second quarter-houses such as JP Morgan or Citigroup, the Corona-crisis pay tribute to and high billions for loan-loss reset.

The is threatening in Europe, which is why the have given to the supervisors here in addition to the dividend barrier, the banks also facilities in respect of capital requirements, so that they can support an economic recovery with loans.