Natixis - The total return on European equities is low: There will be pressure from shareholders

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Natixis

Patrick Artus

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 .

19/05/2019 5 EN

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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.

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Analysts

Patrick Artus

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The total return on European equities is low: There will be pressure from shareholders

Section 899: A tool to increase revenue or to change foreign tax policy?

ECB Takes Summer Pause to Preserve Monetary Policy Flexibility

La BCE en pause estivale afin de garder « l’optionalité » de sa politique

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