The CAC 40 companies save dividend
Profits fell, but dividends have resisted. Despite the fall in profits last year, the CAC 40 companies will total $ 36 billion in dividends to their shareholders this year (in respect of 2009 results). "It's almost as much as in 2008, and it shows the willingness of companies to retain their shareholding," says Sonia Bonnet-Bernard, associate-manager Ricol Lasteyrie, who yesterday presented the fourth financial profile done by the CAC 40 firm.
The payout ratio (the amount of dividends compared to profits) has jumped to 90% (excluding Arcelor Mittal) in 2008 against 48% or 42% in 2007. Only four groups have decided not to pay: EADS, PSA, Renault and Alcatel Lucent.
The corporate largesse is all the more surprising they have not hesitated in the same time, to launch capital increase to finance themselves.More than a quarter of the CAC 40 companies have used the market last year to strengthen their capital, notes Ricol Lasteyrie. In total, shareholders might have paid 24 billion euros. "Companies that take on debt, make capital increases or selling assets … while maintaining their dividends, that has always existed. But for two years, it shows a little more often, "says Moudy El Khidr, portfolio manager at ING IM. In Europe, however, few companies have debts to pay their shareholders. They preferred the issue of new shares.