May is one of the most interesting months of the year for investors looking for Profitability by dividends in Europa. Several of the great continent of the continent have scheduled generous payments in the coming weeks, and the list is dominated by German and French companies.
In Spain, the first notice comes from the hand of two heavyweights. Santander e Inditex They will distribute dividends on May 2. But attention, in order to collect them, it is necessary to have the shares in the portfolio before Monday, April 28. But if we do not arrive on time there is no problem. May is full of opportunities.
Volkswagen It will open fire on May 21 with a payment of 6.36 euros per share. This represents a 7.1% profitability on the current price. In addition, a total dividend of 18.9 euros is expected in the next 12 months, which would imply a 19.3%profitability. They are followed by Mercedes-Benz with a dividend of 5.20 euros with a profitability of 7.4% and BMW that will pay 4.30 euros per share on May 19, with a current profitability of 5.75%.
But not everything remains in the automobile sector. In France, BNP Paribas It will pay 4.79 euros on the same day 21 with a 6.7% profitability. Already on June 3, Carrefour It will distribute 0.92 euros reaching 7.1%.
The list continues with other large companies such as Allianz that on May 13 will pay 15.40 euros per title and a return of 4.34%. Basf will pay 3.40 euros with a 7.75% profitability and Sanofi 3.92 euros on May 14 until exceeding 4%. All of them concentrated in a very tight calendar confirming that the attractiveness of income for dividends is still very alive in the old continent.
Beyond the individual data, it is convenient to put these figures in the European panorama. According to the latest data, the middle dividend in Europe measured in Eurostoxx 600 is 3.2%. Well above 1.37% that offer on average the shares of the S&P 500 in USA. A differential that does not go unnoticed by the most conservative investors.
And if we talk about sectors there are a few that stand out. Tobacco heads the list with 15.7% average profitability. It is followed by banks with 5.9%, telecommunications with 2.4%and the automobile sector with 5.2%. Energy, insurance and ‘utilities’ also exceed 4%.
In addition, many companies maintain solid expectations for the remainder of the year. In several cases, the expected profitability for 2025 exceeds that of the cash dividend of this May. Allianzfor example, with a payment of 15.40 euros, it provides a profitability of 5.9%. Volkswagen could raise its dividend to 8.16 euros compared to the current 6.36.
The European dividend aristocrats are still firm
Outside the Radar de Mayo, there is a group that continues to stand out for its constancy and reliability: the dividend aristocrats. In Europe, this select club includes names such as Nestlé, Novartis, Sanofi, Enel, Lindt y Swiss Life. They are companies that have increased their dividends every year for at least a decade. Even in turbulent times. And that regularity becomes gold for investors looking for stable income.
According to Gianmarco Rania, manager of the Banor European Dividend Plus Fund, we are facing a historical moment for the European companies of high dividend. Many wallets managed by their equipment combine yields of 6% or 7% with repurchases of shares that provide between 3% and 4%. The result is a Total double digit profitability. Something very difficult to find today.
In addition, many of these companies operate mainly in their domestic markets, so they are less exposed to the collateral effects of Trump tariffs or the tensions of international trade. Examples like Italian post officewith a dividend of 7%, or British Petroleumwith 6.5%, they illustrate this defensive solidity well.
Of course, not all dividends are accompanied by good stock extent. From signatures such as Bernstein they warn about cases in which payments are high but the action lacks travel. Telefónicafor example, offers an attractive 6.9%, but its price is stagnant and the recommendations of analysts range between maintaining and selling.
