Can dividend growth return in Europe?

ON EUROPE

European dividend yields have fallen this year, but BlackRock's Andreas Zoellinger highlights some areas where dividend growth can pick up again.

Falling yields Although the European equity market's dividend yield has fallen over the last 12 months, we are positive there are some sectors where dividend growth can pick up again. Political risk now appears to be waning and, with the macroeconomic picture improving, bond yields have risen off historic lows. We are now more cautious about stocks with high momentum and those with significant exposure to emerging markets, the latter having been the main beneficiary of cheap money supply from the developed world. In contrast, we sectors exposed to structural dividend growth include...