BCP dividend yield one of the most attractive offered by European banks

From this Friday, Portugal’s bank BCP will pay out a dividend of three cents per share from a total dividend pot worth €453.4 million.

The payout per share has almost doubled on last year, bringing the bank’s dividend yield to the 18th highest out of all the banks in Europe.

If in 2020 and 2021 the bank did not payout shareholders – mostly institutional investors – it began to do so in 2022 by paying 0.9 of a cent based on the results of the previous year.

Payouts were not made in 2023, but continued in 2024 with BCP paying dividends of 1.7 cents to shareholders.

The dividend yield remains stable compared to last year at around 4.5%, since the increase in the dividend does not offset the increase in the share value in the last year.

Since the end of 2023, the bank’s securities have more than doubled in value to the current €0.672 on Tuesday — the last day before the shares cease to confer the right to the dividend. This year alone, securities accumulated an appreciation of almost 40%.

Given the evolution of the dividend payout per BPC share, the benchmark European banking index Stoxx 600 – BCP has been listed since December, 2023 – has placed BPC shares in the middle of the ranking table of banks which offer the best yields in Europe.

Of the 28 criteria in the Stoxx Banks subindex, the listed Portuguese bank headed by Miguel Maya comes in at 18th place.