The total return on European equities is low: There will be pressure from shareholders
The total return on European (euro-zone) equities since 1998 has been 8.1% per year on average. This gives a risk premium of 4.7%, which is low given the level of risk related to holding equities. This low total return on European equities will definitely prompt shareholde rs to require a higher remuneration : Either increased dividends; Or share buybacks that return the massive amounts of cash held by euro-zone companies to shareholders .
Provider
Natixis
Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.