Dividents won't bring investments in Europe

Companies in Western Europe will pay this year record dividends to shareholders, while reserves reached €2.000 billion, the maximum in the last decade, but investment and employment is seen against the background of uncertainty in the economic recovery, according to a Bloomberg analysis.

The Eurozone Heads of companies are expecting to find the results of the lax monetary policy of the European Central Bank before making any investment decision, according to Stewart Richardson at RMG Wealth Management.

"There is money, but companies will not invest in large capital expenditure programs. I'm not sure where will growth come from and the focus will be on strengthening financial situations and share price," said the analyst.

Companies that are part of the Stoxx Europe 600 index of shares, listed on the major stock 18 Western European, will distribute a dividend of about €11.54 per share, the highest level ever recorded, while the data is centralized since 2002, according to analyst estimates contacted by Bloomberg.