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Siren songs

Don't be duped by Europe's dazzling dividends


Swaha Pattanaik 

Swaha Pattanaik Europe's dazzling dividends could tempt investors into dangerous waters. Companies are paying out more than normal relative to share prices. While this is usually a signal to buy stocks, the bonanza may not be sustainable. The dividend yield on the MSCI Europe Index is 3.6 per cent, almost a fifth above the average of the past two decades. This is a good bit above the dividend yield of 2.1 per cent on the MSCI USA Index. And, no doubt it's even more alluring for those whom Citi analysts have dubbed "bond refugees", investors forced into the equity market by pitiful ...

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First Published: Fri, August 19 2016. 21:20 IST