Dividends in Portugal have a new maximum. In Europe there are 10 bonds with yields higher than 5%.

a Earning season Related to the fourth quarter is coming to an end Earnings season On the way, annual general meetings will be held in April and May, which will approve dividend proposals.

Maxyield – Clube dos Pequenos Acionistas conducted an analysis and concluded that all PSI companies achieved positive results. This comes despite half of the companies included in the index reducing their profits in the context of International Financial Reporting Standards. Global corporate PSI results represent a new annual high, with growth of 6.5%.

“When we calculate Galp in the context of Resource Consumption Accounting (RCA), the overall results grow by 15%,” says Maxyield in his analysis.

“The regular dividend will also reach a new annual maximum, but it will not keep up with the pace of dividend growth and, overall, Profit return “It offers a satisfactory level and ranks well in international comparisons,” adds the Small Shareholders Association.

Hey He will spend He adds that the percentage will be less than 50%, with several explanatory factors.

Some listed companies with appropriate weight in earnings and dividends, namely Galp and EDP, have pre-defined dividend policies.

It can also be noted that some companies are reducing outstanding shares, due to their own share repurchase and acquisition policies, namely CTT and GALP, which affects the amount of dividends to be distributed.

On the other hand, for FY2022, there was an in-kind distribution at Altri and an exceptional distribution at NOS, which is not repeatable, says Maxield.

Earnings per share and dividend proposal of the respective units show that 4 companies reduced shareholder bonuses (Semapa, Navigator, NOS and EDP Renováveis), 2 companies maintained regular dividends (REN and Corticeira Amorim) and 6 companies raised dividend proposals (BCP, CTT, EDP, Jerónimo Martinez, GALP and Sonai S GPS).

It remains to be seen the proposals of four companies (Altri, Mota-Engil, Ibersol and Greenvolt).

Greenvolt, given its results levels, financing needs and level of debt, should not distribute dividends, maintaining the practices of previous years.

Overlapping with “dividend season,” “earnings season” will also occur in April and May, with a surge occurring in this period, referring to the first quarter of the year.

Dividends will be distributed in May and June for the fiscal year 2023.

“These aspects of undeniable importance could influence the development of the Portuguese stock market in 2024,” says Maxilde.

Recall that BCP returned to the Stoxx Europe 600 Index last year. He then joined EDP, Jerónimo Martins and Galp.

Dividends in Spain

Several major Spanish companies are included in the European EuroStoxx 50 index, such as BBVA, Santander and Inditex, which pay their dividends in April or early May.

Unlike European companies, publicly listed Spanish companies typically pay their dividends several times a year.

An analysis by El Economista reveals that on April 10, BBVA will pay its supplementary dividend for 2023, of €0.39, which yields 3.6%. To get it, you must buy shares before April 8.

The bank is one of the stocks with the biggest rise in the Ibex 35 index this year and also one of the biggest stocks in the entire EuroStoxx50 index, rising more than 30% on the stock exchange.

Santander and Inditex match in terms of dates. The bank headed by Anna Botin will also, like BBVA, offer an additional dividend, in this case of 0.095 euros, on May 2. This amount offers a yield of 2.1%.

On May 2, the textile giant that owns Zara will pay shareholders €0.77 per share, marking the first interim dividend of the 2023 financial year.

Inditex, which has been listed on the stock exchange for 23 years, is currently at historic highs on the stock exchange. Its final dividend is usually paid in November.

Europe: 10 bonds with a dividend yield of more than 5%

Dividend season in Europe begins with ten payouts exceeding 5% yield, according to El Economista analysis.

The months of April, May and June are traditionally the most prolific in terms of dividends among European listed companies.

In the EuroStoxx 50 Index, the benchmark index for the Eurozone, 42 companies will pay dividends to their shareholders during this period. This year ten of these companies are applying Dividend returns Equal to or greater than 5% and twenty are at a level equal to or greater than 3%.

Profit return It measures a company's dividend yield compared to its stock price.

Looking at the highest returns, Volkswagen, BNP Paribas and Mercedes-Benz stand out from the rest.

Volkswagen will pay a dividend on June 3 of 9.06 euros per share. The German automaker's shares rose by about 7.6% on the stock market this year, which is less than the index, which rose by about 12%. Like many other EuroStoxx companies, VW only pays out once a year, so this June payment captures all the dividend income the stock offers. The amount of €9.06 is 3.4% higher than the amount paid last year.

On May 23, BNP Paribas distributed a dividend of €4.60, a yield of 7.20%. As with Volkswagen, this is your only annual payment and the amount is 18% higher than it was a year ago. The French bank increased its profits for 2023 by 11.4% to 10.975 billion euros.

A similar ratio of 7.20% provides Mercedes-Benz with a dividend of €5.30 per share and will be delivered on May 13. Again, these are single-year earnings, representing an increase just shy of 2% compared to the previous year.

German company BASF is also offering a 6.5% yield with its April 30 dividend of €3.40, which will be paid to those who hold shares in their portfolio until April 26.

This German chemicals company has kept its dividend at exactly the same amount since 2022, and is expected to repeat €3.40 next year. In terms of results, the group was able during 2023 to overcome the losses of the previous year, achieving a net profit of $225 million.

The same analysis reveals that automaker Stellantis is among this season's top dividend options. The Italian company will pay 1.55 euros on May 3, an amount that yields 5.8% at current prices. Stellantis increased this one-time annual payment by 16% in 2024, compared to 2023, after making a record profit of €18.625 billion last year, 11% higher than the 2022 figure. At an all-time high, it is one of the best performing payments In the EuroStoxx 50 in 2024, with an increase of approximately 26% in the stock market.

AXA's bonds also give a dividend of €1.98 paid on May 6, allowing a yield of 5.70%.

BMW, Unicredit, ING and Allianz remain in the top 5% or above. The German car manufacturer will reward its shareholders with €6 per share, on May 20. They yield 5.7%.

Unicredit Bank's dividend scheduled for April 24 is €1,795, offering a yield of 5.2%. The return from this batch is limited by the trading levels of the Italian bank, which is the most popular stock in the EuroStoxx 50, with an increase of almost 40% this year, according to El Economista.

ING Bank will distribute 0.756 euros on May 3, and the yield on these dividends will reach 5.1%.

Allianz is handing over €13.80 per share to shareholders on May 13, which translates into a dividend of 5%.