European companies to bet on the collection of dividends

One of the calmest strategies for this summer necessarily involves the securities that distribute dividends among their shareholders. But this time, not in the Spanish equities but in the European and very specifically in its selective index, the eurostoxx 50. To the point that it can be a more profitable business opportunity than other proposals on the stock market. Where you will have a guaranteed return to your savings permanent. Even if the evolution of the financial markets is not what you think from the beginning.

It is true that it is not an original way to make your savings profitable. Of course not, as you will have found in our previous information. But at least it will help you have a quieter vacation, without scares or shocks. Not surprisingly, this will be one of your main objectives in a year as atypical in equities as this is in progress. All this that you can obtain clear benefits through the listing of its shares. It is the double advantage that you can import from this investment strategy.

In any case, it is an investment model for the more defensive profiles that small and medium investors present. The risks are minor, but without giving up any expectation of increasing your checking account balance from these precise moments. But in this particular case, through the European stock market. Because in effect, you will not miss proposals at any time, as you will see from now on.

Dividends of European companies

Many of the experts in equities allude in their analyzes to the fact that the European stock market is not expensive at the moment. Especially when compared to other financial assets, such as bonds. To the point that many of the monetary flows of these financial products can be diverted towards these old continent values ​​that distribute a dividend per share. It is an opportunity to get out of the national markets, but without abandoning your strategies to make your savings profitable. Do you want to know a proposal to satisfy this special demand?

Well, from this general context, you cannot forget that the revaluation potential that these analysts grant to the European benchmark is very high. Some of the opinions are aimed at that this market could be appreciated in the next in up to 10% on their current prices. Above other national indices or even from the US stock market itself. From this point of view, it is more advisable to enter than to leave these financial markets.

To the point that if you analyze the evolution of European equities, you will reach the final conclusion that the dividend yield is at similar levels to those acquired in the 80s. An invitation that you can open positions in some of its most representative values. In addition, these are highly relevant companies that have great liquidity that makes them very receptive so that you can enter and exit at the time you consider most appropriate. Not surprisingly, they are well-known companies by the vast majority of small investors. With lines of business that generate broad benefits in your income statement.

Potential to enter their positions

One of the main incentives to opt for European securities that pay dividends are their good prospects for continuing to grow in their prices. Because indeed, in the opinion of some of these analysts. At least as regards the medium term, around two and three years. Another of the reasons that invite you to make this important decision is due to the lack of attractiveness of other financial products. Both in terms of equities and fixed income. And of course, in relation to banking products (term deposits, bonds, obligations, etc.).

All these particularities generate that you can opt for values ​​of these characteristics that can be adapted to the real needs that you have in the investment world. With the same approaches as if it were on the Spanish stock market. It is true, it is a proposal that is intended for more conservative investor profiles. But with the advantage that other investors can choose this alternative. To the point that new opportunities open up that you didn't have in your mind until now.

European Dividend Companies

There are many baskets of values ​​that distribute dividends to which you can go from now on. But if you have to opt for specific values, the list is notably limited. One of these proposals comes from a company as representative of European equities as it is Danone. It is one of those that distributes a higher dividend to its shareholders. Historically, its performance has always exceeded 5% levels. It is not even missing in investment portfolios developed by the most influential funds.

It is not a unique value with these characteristics, since you have another alternative that is represented by the actions of  lafargeholdim.  As the new leader in the building materials industry, this old continent company has the assets to face the challenges of the coming years. Not surprisingly, it is one of the most determined bets by some of the analysis houses with the greatest impact on the financial markets.

Perhaps one of its great disadvantages is that it is a bit unknown by small and medium investors. And therefore, they may be more reaction to opening positions in this value of European equities. In short, it is one of the covers to make your savings profitable due to its evolution in the markets in recent months. In a very clear uptrend, although they are exempt from their punctual corrections in their prices. To the point that it can be one of the great surprises from now on.

The advertising giant WPP

The advertising and communication group WPP It was the last company to transfer its candidacy for you to buy shares to achieve your most desired objectives. It is also another of the proposals that can give you more than one joy, even in the most unfavorable scenarios for stock markets around the world. He is also not well known and this is a factor that can work against his interests.

On the contrary, it shows a more positive evolution in financial markets than in other securities. With a income statement that has exceeded the expectations created in some of the most relevant financial analysts. It is not surprising, in short, that he can continue to climb positions as of this summer. Not with movements that are not very vertical, but powerful enough to guarantee that you can generate capital gains on your monetary contributions.

Advantages of these European values

In any case, the contracting of your securities entails a series of contributions that will benefit your positions as a retail investor. They are many and diverse in nature, as you will understand from now on. Basically they would be the following that we expose you below.

• They represent new business opportunity. Precisely at the moment that you have exhausted the profitability of the top-tier stocks. Not only in national financial markets, but also outside our borders.
• Investing in some of these stocks will not mean you have to deal with more expansive spending. Because in effect, its commissions will be very similar to the rest of international equities. From this aspect, there will not be many surprises that you can come across.
• Report a dividend yield around 4% and in tune with what Spanish listed companies offer. It is an option to import fixed income within the variable. With excellent returns for the medium and long term.
• Generally, the securities that distribute this payment to shareholders come from the German, Italian and French bags above other squares of the old continent. Under the same payment conditions as here.
• You will only have to assume that more demanding commissions than through national ones. It is one of the small disadvantages that you will have to assume for formalizing this kind of operations in equities.
• It is an eminently conservative strategy whose main objective is preserve capitals through a fixed and guaranteed yield every year. Regardless of the evolution of prices in financial markets.
• Another form of investment can be formalized through investment funds whose global portfolio is based on securities of these characteristics. They are many and diverse in nature so that they can adapt to all profiles presented by retail investors.
• As in the dividends of Spanish securities, the payment in these cases is exactly the same. They will go to your checking account at the precise moment the payments are executed. What's more, are presented with different periodicities: quarterly, semi-annually or annually, depending on the policies of each of the companies that issue these dividends.