Chart of the Month - July 2026

Europe offers a compelling starting place for yield

Clients want both participation in equity upside and a reliable income stream, and income-oriented equities can help deliver both objectives simultaneously. As shown in the chart, Europe currently leads major equity markets on combined forward dividend and buyback yields. While the US has historically been associated with higher buyback yields, elevated capital expenditure is weighing on the free cash flow available for shareholder returns.

As a result, Europe has moved into the lead on both forward dividend yield and buyback yield, providing an attractive total shareholder yield backdrop. Importantly, this income advantage does not necessarily require sacrificing growth exposure; with our internal analysts forecasting approximately 12% earnings per share (EPS) growth, helping preserve upside participation alongside the income component. For investors seeking to anchor total return potential with a strong income foundation, European income equities represent a compelling place to start.