From October, the ECB will remove the cap on the distribution of dividends from European banks and many big names in Piazza Affari are preparing to grant their shareholders very rich coupons. The banking sector continued to accumulate excess capital during the Covid period and autumn 2021 presents itself as a golden opportunity for shareholders to participate in a bountiful banquet with yields close to double digits. Algebris estimates for the sector an overall return for shareholders (including dividends to be recovered and buybacks) of 8%, and subsequently, on a more sustainable basis, of 7%.
Looking at the panorama of Piazza Affari, Intesa Sanpaolo was the most resounding bank in emphasizing the desire to adequately remunerate shareholders once the ECB cap disappears. But even among the second-tier banks, there are very attractive potential returns.
The autumn dividends of the banks of the Ftse Mib
Mediolanum Bank proposed the distribution of a coupon of € 0.7533, relating to the second tranche of the 2020 financial year which will be detached on 18 October 2021. At prices of 8.79 euros, it provides a yield of 8.5%.
Intesa Sanpaolo announced it detachment in two tranches of a dividend of € 0.0996 relating to the 2020 financial year on October 18 2021 and an advance of € 0.0721 relating to the 2021 financial year with detachment date on 22 november 2021. Overall, it will distribute to shareholders € 0.1717 as dividends, equal to a yield of about 7%. In May, Intesa had already distributed 694 million in cash dividends for 2020.
Mediobanca announced the release of a coupon of 0.66 euros with detachment date 22 November 2021. At a price of 9.99 euros it provides a yield of 6.6%.
FinecoBank announced the release of a dividend of 0.53 euros with detachment date November 22, 2021. At prices of 16.32 euros it provides a yield of 3.2%.
In the end, Banca Generali announced that it had allocated the floor of 1.25 euros per share on the 2021 results, in addition to the 3.3 euros approved for the 2019/2020 financial years. A total coupon of 4.55 euros per share is thus achieved, which will be paid between October 2021 and April 2022. At the prices of 36.94 euros, a total dividend yield of 12.3%.
In the table below, taken from the Intermonte Equity Focus of 11 August, very substantial dividends emerge, also arriving from companies such as Banca Ifis (1,10 euro, yield dell’8%) e Bank System (0,17 euro, yield dell’8%).