Equity investors get top returns from financials

ON EUROPE

Despite being a no-go area for the masses, well-heeled financials offer value, writes F&C's Paras Anand

The evolution of shareholder culture has changed the landscape for investors in European equities. A decade ago, the premium of yields in Europe was only fractionally above the MSCI World index. Ten years on, the dividend yield on the DJ Euro Stoxx 50 index is currently 4%, which compares to 3.3% for the FTSE 100 index and 2.4% for the MSCI World index. This demonstrates Europe is taking their shareholders seriously. We are particularly positive on financials in Europe. We favour companies like Svenska Handelsbanken, who came through the Nordic financial crisis and grew its dividend i...