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BofA Merrill Lynch's "Turbo Dividend" selection includes several French shares. (© Adobestock)
BofA Merrill Lynch experts have chosen European companies with high sustainable returns. In their selection, we find several French values, including Michelin, Thales or LVMH.
BofA Merrill Lynch strategists are encouraging investors to take advantage of the US-China trade price decline to buy European equities ahead of the G20 scheduled for late June.
They evoke multiple reasons for companies that pay high dividends.
The spread between equity and government bond yields is at its highest level in a century, while the "dovish" rhetoric of the European Central Bank pushed back the end of 2021 of its key rate.
Shares bring in more than bonds
A record 92% of European listed companies earn more in dividends than ten-year government bonds in their country of origin. The average return on equities is higher than the yield on investment grade corporate bonds and high yield bonds.
The stock of bonds in the world whose return is negative has reached its peak of 12,000 billion dollars.
Dividends are usually reduced when profits fall by more than 10%, while BofA Merrill Lynch expects this year to increase between 0% and 5%.
The market is starting to anticipate a fall in the US policy rate, which favors flows to funds invested in
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