Excluding The Covid-19 Crisis, The Dividends For 2022 Could Have Reached €360 Bn

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Alphavalue | In a recent strategy note we already mentioned the 200 billion euros lost between 2020 and 2021 in our coverage universe (see table attached). This is undoubtedly a significant figure equivalent to 3 trillion euros of market cap, which implicitly represents a 3.5% annual dividend yield.

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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.

In terms of sectors, the table shows the opportunity cost as the best way to understand how much has been lost compared to what was expected a year ago. We highlight the banks on the negative side of the table, together with Energy, Cars and Insurance. On the other hand, the big surprise has been Semiconductors, a sector that does not stand out especially in terms of dividends.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.