Strong earnings in Europe are leading to increases in dividend payouts and an uptick in M&A activity on the Continent. Global diversification is more important than ever. As always, investors should focus on harvesting dividends to create a portfolio that generates income for compounding, and funding retirement.
Nina Trentmann reports on Europe’s strong performance:
European companies have struck several deals since the beginning of the year, including Sanofi SA ’s SNY 0.48% proposed takeover of Bioverativ Inc. for more than $11.5 billion. Swiss industrial firm ABB Ltd. ABB -0.20% is on the hunt for mergers and acquisitions, said CEO Ulrich Spiesshofer during a Feb. 8 earnings call. Danish insulin maker Novo Nordisk A/S NVO 0.58% is scouting acquisitions in several markets including the U.S., outgoing CFO Jesper Brandgaard said in early February.
Deal making could also get a boost from low financing costs. Unibail-Rodamco SE, a Paris-based operator of luxury shopping malls, reported its cost of debt in 2017 fell to an “all-time low” of 1.4%. Unibail in December struck a deal to buy Australia’s Westfield Corp. for $16 billion.
Other companies are spending more cash on dividends. German sportswear maker Puma SE PUM +0.15% has proposed to pay a one-time dividend of €12.50 per share later this year. This comes after annual revenue exceeded €4 billion for the first time in the company’s history last year. L’Oréal plans to raise its dividend by 7.6% to €3.55, following sales growth across all of its divisions. Daimler AG DMLRY 0.04% also wants to boost its dividend, said Chairman Dieter Zetsche during the car maker’s most recent earnings call.
Read more here.
Originally posted on Yoursurvivalguy.com.
Latest posts by E.J. Smith (see all)
- A Risky Addition to an Otherwise Decent Dodd-Frank Reform: Part II - May 25, 2018
- A Risky Addition to an Otherwise Decent Dodd-Frank Reform - May 24, 2018
- A Warning for the Global Economy - May 23, 2018