Goldman Sachs Boosts Euro Stoxx 50 Dividend Forecasts Amid Strong Earnings Growth

Goldman Sachs has upgraded its dividend forecasts for the Euro Stoxx 50 index, predicting an increase of approximately 6 index points above estimates from May. The investment bank now expects the index to reach 194.7 in 2027 and 218.3 in 2028.

The strong earnings growth in companies benefiting from artificial intelligence capital expenditure, particularly semiconductor firms, has driven the upgrades. Goldman Sachs' equity strategy team also upgraded its fiscal year 2026 earnings per share growth forecast for Europe to 15% from 10%, with upgrades concentrated in energy, basic materials, technology and financials sectors.

The favorable sector mix has supported Euro Stoxx 50 and FTSE 100 dividends. However, Goldman Sachs observed that dividend risk premia have compressed and appear low compared to historical levels and credit spreads.