“The fact US companies are paying out a lot is starting to put pressure on European companies to pay out more,” Thibault Colle, strategist at UBS, said in the FT article.

However, Hans Lorenzen, a strategist at Citi, warned that European companies remain more conservative in issuing a pay out to shareholders, especially with a comparative absence of activists, or high profile shareholders who have pressured U.S. companies to release more cash.

For more information on European markets, visit our Europe category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own shares of HEDJ and SPY.