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Europe’s ‘Big and Hungry’ Family Investors Mean Safer Dividends

  • Family stakes, cash-flow cover predict resilient dividends
  • Firms on AlphaValue shortlist defy trend of scrapping payouts
European Stocks Faltering As Dax Enters A Bear Market
Photographer: Hannelore Foerster/Bloomberg

As companies scramble to suspend shareholder payouts to survive the pandemic, one group in Europe stands out as particularly resilient: those steered by family owners.

More than a quarter of the companies in the Stoxx Europe 600 Index have canceled or postponed dividends in the past month, according to data compiled by Bloomberg. In contrast, Paris-based research firm AlphaValue identified 47 family-influenced firms in the benchmark with solid finances, and only three of those have done the same.