|Bid||28.32 x 0|
|Ask||28.40 x 0|
|Day's Range||28.36 - 30.94|
|52 Week Range||20.98 - 52.15|
|Beta (5Y Monthly)||0.41|
|PE Ratio (TTM)||20.30|
|Earnings Date||Mar 12, 2020|
|Forward Dividend & Yield||1.00 (3.38%)|
|Ex-Dividend Date||May 20, 2019|
|1y Target Est||47.13|
(Bloomberg) -- The coronavirus pandemic may cause dividend payments by European companies to halve in 2020, threatening a major source of income for investors in the region’s equities, according to Citigroup Inc.With an increasing number of companies lowering, suspending or reviewing their payouts, Citigroup strategists led by Robert Buckland say more could be on the way as a 1.6% contraction in global growth would slash European earnings by 50%.For pension funds heavily invested in income strategies, the blow will be especially severe. In 2019, continental European firms paid about $251 billion in dividends, while U.K. corporates distributed $106 billion, according to Janus Henderson. Should Citi’s prediction prove accurate, about half of that total, or $178 billion, would be wiped out.“Dividend per share doesn’t usually fall as much as EPS, but high payout ratios, along with corporate prioritization of balance sheets and employees, may mean European dividends also halve,” Buckland wrote, noting that the payments to shareholders fell by a third during the 2008 financial crisis.Across the region, companies from luxury-goods makers to banks are under pressure from lawmakers to cut back on payouts. On Monday, the European Central Bank recommended that lenders suspend their dividends and is now looking to force them to do so if they don’t bolster capital during the coronavirus crisis. Meanwhile, Tod’s SpA canceled its payout, with Citigroup analysts predicting more such moves across French and Italian peers.Morgan Stanley analysts estimate that mechanically, if banks dividends were canceled for a full year, this would imply a 8% hit to index level distributions for the MSCI Europe. Should other European bank regulators follow suit, the impact would amount to 18%.The impact of declining dividends will be felt particularly acutely by investors in Europe, where yields are higher than in the U.S. The Stoxx Europe 600 trailing dividend yield stands at 4.4% compared with 2.3% for the S&P 500, as buybacks have been the main way to return money to shareholders in the U.S.Large payouts and an over-exposure to high-yielding energy and financials makes the U.K. particularly vulnerable to dividend cuts, according to Citi’s Buckland.Since the global financial crisis, most of the returns generated by European equities have been linked to dividends. Before the drawdown triggered by the coronavirus outbreak, the MSCI Europe index was up barely 10% since 2000, while its total-return equivalent had risen more than 80%.(Adds details on luxury sector, estimates from Morgan Stanley in paragraphs 5, 6)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
American billionaire Rocco Commisso has bought Italian Serie A soccer club ACF Fiorentina from the Della Valle family, his U.S. cable company Mediacom Communications announced on Thursday. Italian-born Commisso, who also owns U.S. soccer club New York Cosmos and is the chairman and CEO of Mediacom, made a failed offer last year to buy a controlling stake in AC Milan.
U.S. billionaire Rocco Commisso is close to agreeing the purchase of Italian Serie A soccer club ACF Fiorentina from the Della Valle family for around 160 million euros ($180 million), a source with knowledge of the matter said on Tuesday. The Della Valle family owns luxury goods group Tod's and, since 2002, the Florence-based club who last season narrowly escaped relegation. The source said ACF Fiorentina's owner, Diego Della Valle, and Commisso met on Tuesday at Tod's offices in Milan and that a deal could be struck as soon as later on Tuesday or Wednesday.
ACF Fiorentina has called an extraordinary board meeting on May 31, the Italian Serie A soccer club said in a statement on its website on Monday, without giving further details. Separately, a source close to the matter said on Monday that Mediacom Chairman Rocco Commisso was interested in buying Fiorentina from the Della Valle family. The New York Times reported last week Commisso was ready to pay $150 million for Fiorentina, which on Sunday escaped relegation.
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