Alejandro of http://www.dividendsranking.com/
American Investors are much more inclined to expect dividends, and most companies deliver, but in Europe companies do not seem to care much for investors’ wishes. To see it you just have to take a look at the number of EURO companies that have increased their dividend since 2004 – 38 -compared to the number of companies in US – 186!
ADW Capital’s 2020 letter: Long CDON, the future Amazon of the Nordics
ADW Capital Partners was up 119.2% for 2020, compared to a 13.77% gain for the S&P 500, an 11.17% increase for the Russell 2000, and an 8.62% return for the Russell 2000 Value Index. The fund reports an annualized return of 24.63% since its inception in 2005. Q4 2020 hedge fund letters, conferences and more Read More
This has more to do with cultural differences than with the large Atlantic ocean separating the two. The UK happens to be more similar to America than Europe in regards to dividends. If we take a look at UK companies, 35 companies have increased their dividend since 2004. That is almost as much as the entire Euro-zone!
There are also differences between the sector companies that are in top of each group:
- In Europe we find it full of telecommunications companies: Deutsche Telekom, Telefónica, Telekom Austria, Portugal Telecom, Royal KPN. They came from the former state monopolies that are now generating large cash but also losing market share to new competition.
- US index consists of many Utilities companies. Fourteen of the first twenty-five companies are of this sector, well known because of their ability to generate income with low risk. Some examples are: Firstenergy Corp., Pepco Holdings, Progress Energy, Nisource,…
- As mentioned before, UK is more of a hybrid between America and Europe, and has companies from five different sectors in its first five positions: Provident Financial – Financials, Scott. & South. Engy – Utilities, AstraZeneca – Health Care,Vodafone Group – Telecommunications, BAE Systems – Industrials.
European companies are changing and developing a consistant dividend policy so why we don’t take advantage of it? As we can see, our diversification will be much more powerful if we take in account all companies rather than our country ones. All multinational sell worldwide so why don’t invest on them.