Some 44 billion euros have been paid out to shareholders for the second quarter of this year alone. This is revealed by a study carried out by an asset manager Janus Henderson. These 44 billion euros in dividends were distributed as profits made in 2021. And last year, with the post-Covid recovery, activity was good for many groups.
The phenomenon is global, but in France the increase in dividends is spectacular, almost 33% more over one year. It should also be noted that unlike the United States, European companies often pay only one dividend in the year and that is in the second quarter. This is why the dividend payout is so high.
Among the twenty largest distributors of global dividends – because the study is international – there are four French companies. The BNP Paribas bank comes first with nearly five billion euros returned to shareholders. Behind, Sanofi with almost 4.5 billion euros. Then the insurer Axa 3.8 billion, neck and neck with the luxury group LVMH, 3.7 Billions of Euro’s.
In a context of high inflation, with the purchasing power of the French dwindling and while activity is slowing down, the question of the sharing of wealth will come back in force, there is a risk of controversy. We have talked about it a lot, but the taxation of “super profits” risks being posed again. Admittedly, the study makes it clear that this level of dividends is exceptional. She also points out that given the clouds that are gathering over the economy, next year will surely be less buoyant and therefore companies less generous.
Nevertheless, in the meantime, these results will encourage workers and unions to demand wage increases more than ever. These dividends can only fuel social protest