JB Tracker Certificate on the European High Dividend Stocks Basket

WHAT'S THE STORY?

• Yields in the European fixed income space are low and no imminent change to the interest rate environment in Europe is expected.
• Generally speaking, dividend strategies remain more attractive in Europe than in the US given that in Europe there is a clear gap between fixed income yields and dividend yields (total equity market dividend yield vs. government bond yields and high dividend yields vs. corporates yields). Hence, our equity strategists have an ‘Overweight’ rating for European dividend stocks, while they are ‘Neutral’ on US high dividend stocks.