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Bet on an increase in dividends in Europe with a 100% certificate

For reasons of good governance linked to the health crisis, 2020 will be a lean year for shareholders in terms of dividends. Before companies find a more normative distribution policy.

The watchword on the boards of directors was simple this year: little or no distribution of dividends to shareholders so as not to offend sensitivities in an economic and health environment made very difficult by the coronavirus epidemic. Some industries, such as insurance companies and banking institutions, have not even had a say. The European Central Bank or their supervisory body clearly prohibited them. 2020 is set to be a lean year for shareholders. According to the compilation of the firm Factset, the windfall in dividends should fall this year by nearly 26% this year before increasing again over the next three years to resume by 2023 with the record amount of 114.79 euros per share paid. last year. In France, groups like Saint-Gobain or Eiffage, for example, have already warned that next spring they will take into account the non-payment in 2020 when deciding the amount of the next coupon. For their part, banks are hoping for a green light at the end of the year from the European Central Bank to once again spoil their shareholders. In an environment of zero interest rates, the expected return of around 3% by 2023 on the sample of the Euro Stoxx 50 index is an asset in favor of equities.

The 100 certificate only replicates the evolution of the underlying

Banking on this theme of yield is possible through a 100% certificate issued by BNP-Paribas (code: FRBNPP00LZ32) with a deadline of December 15, 2023 and backed by a future contract covering dividends by 2023. The Principle of the product is very simple: it works like a share and moves without leverage up or down to replicate the trajectory of the underlying. It currently quotes 92.35 euros. Please note, like all certificates, it cannot be housed in a PEA (Plan d’Epargne en Actions).

Our advice: buy a 100% dividend 2023 certificate issued by BNP-Paribas (code: FRBNPP00LZ32); deadline: December 15, 2023; price: 92.35 euros; portion: 1.

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