Careers Contact us
Menu

Dividends to rise again in Europe: EUR 459 billion expected for 2025

  • Dividends in Europe are forecast to increase by 4% in 2025, European dividend yield also on an upward trend 
  • Allianz Global Investors Dividend Study 2025 highlights opportunities for dividends to generate additional investment income
  • Dividends have a stabilising effect on the overall portfolio and have grown steadily in recent years
     

14.01.2025  | In 2025, dividends in the MSCI Europe are expected to rise to a new record high. According to calculations by Allianz Global Investors (AllianzGI)1, dividends by companies in the broad European equity index MSCI Europe amount to around EUR 440 billion in 2024. Dividends are expected to total around EUR 459 billion in 2025. This represents an increase of 4% year-on- year. In 2026, dividends are forecast to be around 496 billion euros (up 13% from 2024). In Germany, dividends are expected to increase from around 57 billion euros in 2024 to around 63 billion euros in 2025, and could reach 70 billion euros in 2026.  

Grant Cheng

"Following uninterrupted growth in dividend payments in Europe since the coronavirus pandemic, dividend increases are continuing. And this trend is intensifying - the annual increase in dividend payments is also expected to rise," says Grant Cheng, Portfolio Manager Dividends at AllianzGI. "At a sector level, Information Technology and Healthcare are among the sectors with the highest expected dividend increases for 2025. In the energy sector, dividend payments will tend to decline. The financial sector will remain the largest dividend payer, with dividend growth slowing in 2025".


The expected dividend yield, i.e. the percentage payout relative to the current share price, follows the trend of rising absolute dividend payments. For MSCI Europe companies, it stood at 3.3 at the end of 20242 and could rise to 3.5% this year. This means it is still higher than the yield on long-term German government bonds. The German companies included in the MSCI Europe have a dividend yield of 2.9% for 2024 - 3.2% is expected for 2025. Austria tops the European ranking: The dividend yield remains at the same level for 2025 after 6.2% in 2024.

AllianzGI Dividend Study 2025: Dividends emphasise attractiveness for capital income

Dividends make a significant contribution to the total return of an equity investment, as the Allianz Global Investors Dividend Study 2025 shows3. Over the entire period of the past 40 years, almost 39% of the MSCI Europe’s annualised total return on equity investments was driven by the performance contribution of dividends. In North America (MSCI North America) and Asia-Pacific (MSCI Pacific), dividends contributed just under 22% and just over 41% of total performance, respectively.

Dr. Hans-Jörg Naumer

Companies also tend to pursue a steady dividend policy that tends to focus on increases. Dr Hans-Jörg Naumer, author of the dividend study and Head of Capital Market Analysis at AllianzGI, says: "Looking at the last 20 years in the even broader STOXX Europe 600 market index, the study clearly shows that the vast majority of companies have tended to increase their dividends compared to the previous year. Only a significantly smaller proportion of companies cut their payouts, except for exceptional years such as 2009, the year after the outbreak of the global financial market crisis, and the pandemic year 2020. Total payouts have also increased from year to year in the past".

Another important role is played by dividends as additional capital income. "At a time when people are living longer, especially in developed countries, when state pension funds are under demographic pressure and when there are fewer and fewer people in work, labour income should be supplemented by capital income," says Dr Hans-Jörg Naumer. "Due to their steady growth and their significant share in total returns, dividends are a suitable way to generate additional capital income. This income that can then be used, for example, for children's education, as additional holiday pay or for the third phase of life". In addition to dividend payouts, investors can ideally also benefit from share price gains. 

The full AllianzGI Dividend Study 2025 can be found here.

You can access freely usable and editable graphics of the study here.

Contact

Klaus Papenbrock
Phone +49 69 24431-2476 | Mobile +49 151 12105248
klaus.papenbrock@allianzgi.com

Vincent Teichmann
Phone +49 69 24431-2078 | Mobile +49 162 5614327
vincent.teichmann@allianzgi.com



About Allianz Global Investors

Allianz Global Investors is a leading active asset manager with over 600 investment professionals in over 20 offices worldwide and managing EUR 560 billion in assets. We invest for the long term and seek to generate value for clients every step of the way. We do this by being active – in how we partner with clients and anticipate their changing needs, and build solutions based on capabilities across public and private markets. Our focus on protecting and enhancing our clients’ assets leads naturally to a commitment to sustainability to drive positive change. Our goal is to elevate the investment experience for clients, whatever their location or objectives.

Data as at 30 September 2024. Total assets under management are assets or securities portfolios, valued at current market value, for which Allianz Global Investors companies are responsible vis-á-vis clients for providing discretionary investment management decisions and portfolio management, either directly or via a sub-advisor (these include Allianz Global Investors assets which are now sub-advised by Voya IM since 25 July 2022). This excludes assets for which Allianz Global Investors companies are primarily responsible for administrative services only. Assets under management are managed on behalf of third parties as well as on behalf of the Allianz Group. 

 1  Own analysis based on data from Morgan Stanley, JP Morgan and Jefferies
 2  Own analysis, reporting date 30 November 2024, based on data from Morgan Stanley, Kepler Chevreux, JP Morgan, Jefferies and Barclays.  
 3  Allianz Global Investors Dividend Study 2025

 

  • Disclaimer
    Investing involves risk.The value of an investment and the income from it will fluctuate and investors may not get back the principal invested. Past performance is not indicative of future performance. This is a marketing communication. It is for informational purposes only. This document does not constitute investment advice or a recommendation to buy, sell or hold any security and shall not be deemed an offer to sell or a solicitation of an offer to buy any security.

    The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. Certain data used are derived from various sources believed to be reliable, but the accuracy or completeness of the data is not guaranteed and no liability is assumed for any direct or consequential losses arising from their use. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted.

    This material has not been reviewed by any regulatory authorities. In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. This document does not constitute a public offer by virtue of Act Number 26.831 of the Argentine Republic and General Resolution No. 622/2013 of the NSC. This communication's sole purpose is to inform and does not under any circumstance constitute promotion or publicity of Allianz Global Investors products and/or services in Colombia or to Colombian residents pursuant to part 4 of Decree 2555 of 2010. This communication does not in any way aim to directly or indirectly initiate the purchase of a product or the provision of a service offered by Allianz Global Investors. Via reception of his document, each resident in Colombia acknowledges and accepts to have contacted Allianz Global Investors via their own initiative and that the communication under no circumstances does not arise from any promotional or marketing activities carried out by Allianz Global Investors. Colombian residents accept that accessing any type of social network page of Allianz Global Investors is done under their own responsibility and initiative and are aware that they may access specific information on the products and services of Allianz Global Investors. This communication is strictly private and confidential and may not be reproduced, except for the case of explicit permission by Allianz Global Investors. This communication does not constitute a public offer of securities in Colombia pursuant to the public offer regulation set forth in Decree 2555 of 2010. This communication and the information provided herein should not be considered a solicitation or an offer by Allianz Global Investors or its affiliates to provide any financial products in Brazil, Panama, Peru, and Uruguay. In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional /professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws.

    This document is being distributed by the following Allianz Global Investors companies: Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin); Allianz Global Investors (Schweiz) AG; Allianz Global Investors UK Limited, authorized and regulated by the Financial Conduct Authority; in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK). Admaster 4135909

Allianz Global Investors

You are leaving this website and being re-directed to the below website. This does not imply any approval or endorsement of the information by Allianz Global Investors Asia Pacific Limited contained in the redirected website nor does Allianz Global Investors Asia Pacific Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contain funds and strategies not authorized for offering to the public in your jurisdiction. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.