Also in 2019 the time has come to think about dividends. For the stock market, spring is not only the season in which the good weather begins, the temperatures become milder and the sun shines in the blue sky. The weather is probably of little interest to shareholders, yet all investors look forward to this period every year with trepidation. The reason is obvious: between February and March the main listed companies announce the remuneration to be given to shareholders on the previous year's profits.
As the various budgets are approved – and the calendar is busy and varied – the boards of directors also communicate the dividend proposal which will have to be approved by the shareholders' meeting and often retail and institutional savers also take advantage of it to give their portfolios a “tweak” so as not to miss out on the richest coupons.
For 2019 the dates to mark in red on the calendar are essentially two: on April 23 and May 20, two days in which the main companies listed on the Ftse Mib will detach their coupon, with payment which in the vast majority of cases is expected between two and three days later.
Like every year, the question that shareholders ask themselves is always the same: which will be the "most generous" company in the main list? This year the question becomes even more important because after the heavy losses accumulated in 2018 (the Ftse Mib closed the year down by more than 16%), the shareholders finally hope to recover something.
Last year, the companies listed on the main exchange disbursed 17 billion coupons. How will this year go? For the moment it is still too early to provide overall figures, but it is already possible to get an initial idea of the amounts and the payout of the individual coupons.
DIVIDENDS 2019: THE FTSE MIB RANKING
Overall, we can give shareholders some good news. With a few exceptions, almost all the companies in the Ftse Mib have decided to increase the dividend compared to the previous year and therefore the total amount to be allocated to investors will exceed the 17 billion euro disbursed last year.
The ranking takes into consideration only the dividends already announced by the individual companies and which have yet to be submitted to the green light of the shareholders' meetings.
We relied only on the expected amount per share and not on the yield which is calculated by dividing a company's annual dividends by the current price of a share.
Using this parameter, it is once again at the top of the rankings this year Azimuth, which on March 7 announced its intention to distribute 1,5 euros per share (2 euros last year), equal to a pay-out of 141% gross of withholding taxes. The coupon will be paid for a minimum of 3/4 in cash and for the remainder in treasury shares held in the company's portfolio.
In second place there is General Bank which on 20 May will pay a dividend of 1,25 euro per share, followed by Ferrari with 1,03 euro per share (ex-coupon on April 23).
In fourth and fifth place in the dividend rankings they place Recordati with 0,92 euro per share (from 0,85) e Atlantia with 0,9 euros per single title. In the latter case, the holding company has decided to lower the coupon amount compared to the €1,22 disbursed last year.
It is in sixth position in terms of amount per share Eni, with 83 cents (from 80) per share, of which 0,42 distributed in September 2018 as an interim payment. The balance dividend of 0,41 per share will be paid from 22 May 2019 with ex-dividend date on 20 May 2019
Seventh fca, whose board has proposed a dividend of 65 cents per share for a total amount of 1 billion euro. But be careful because it must be considered that the company led by Mike Manley will also distribute an extraordinary dividend of 2 billion (€1,3 per share) for the sale of Magneti Marelli, the closing of which is expected in the second quarter of 2019.
Eighth place at 47 cents per share (up from 37 a year ago) per Mediobanca, ninth at 43 cents per share per Prysmian (stable). Closes the Top 10 Moncler, with 40 cents per share from 28 the previous year.
This is the partial ranking of the "most generous" companies in the Ftse Mib. In this context, it must be considered that giants of the caliber of Enel and Generali are still missing.
DIVIDENDS 2019: WHO OFFERS THE HIGHEST RETURNS
When setting up an investment and portfolio diversification strategy, it is not only the amount allocated for each single share that counts, but above all the return that each company decides to guarantee on the dividend.
Again there is good (very good) news for shareholders. The Ftse Mib companies will also be very generous in terms of dividend yield which on average will amount to 4,8% this year, the highest of all the lists of the Old Continent that, according to Bloomberg estimates, they will offer yields between 4,2 and 4,5 per cent.
As far as the dividend yield of individual shares is concerned, FIRSTonline has attempted to calculate it on the basis of the share price updated at the close of 7 March. In this case we have also included in the ranking some companies that have not yet confirmed their dividend, using the estimates made by the consensus on remuneration policies and industrial plans.
First place doesn't change. Azimuth it also confirms its queen position in the ranking of yields with a record dividend yield of 11 per cent. Second step of the podium for Intesa Sanpaolo which on 20 May will pay a coupon of 19,7 cents per share, gross of withholding taxes. Overall, the proposed cash dividends are equal to 3,449 billion euros, an increase compared to 3.419 million in 2017 and equal to the 85% payout ratio indicated in the Business Plan for 2018. As regards the yield updated as at 7 March, the percentage exceeds 9%.
Bronze medal for Unipol Sai, whose coupon of 0,145 euro per share will guarantee a yield of 6,5%.
They follow:
- General Bank, dividend yield: 5,66%,
- Generali, estimated dividend of 0,9 euro, dividend yield: 5,6%,
- Poste Italiane, estimated dividend of 43 cents, dividend yield: 5,5%,
- Eni, dividend yield: 5,43%,
- Mediobanca, dividend yield: 5,3%
- Snam, dividend of 0,226 euro, dividend yield: 5,18%
- Enel, estimated dividend of 28 cents per share, yield: 5,1%
Warning in this ranking is not mentioned fca because, taking into account only the ordinary return, the share would not enter the Top 10. However, if the extraordinary coupon promised for Magneti Marelli is added to the figure, the return guaranteed by FCA would be equal to 15% and would allow the company to conquer even the first step of the podium.
