3 European Dividend Stocks Yielding Up To 6.9%

As European markets experience a lift from easing trade tensions and potential economic stimulus, investors are increasingly eyeing dividend stocks as a way to generate income amidst stagnant growth indicators. In this environment, selecting dividend stocks with stable yields can be an effective strategy for those looking to balance risk and reward while navigating the current economic landscape.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 238 stocks from our Top European Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Sydbank (CPSE:SYDB)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Sydbank A/S, with a market cap of DKK23.62 billion, offers a range of banking products and services to corporate, private, retail, and institutional clients both in Denmark and internationally through its subsidiaries.

Operations: Sydbank A/S generates revenue through its primary segments, with Banking contributing DKK5.84 billion, Treasury at DKK84 million, Sydbank Markets providing DKK363 million, and Asset Management adding DKK485 million.

Dividend Yield: 5.7%

Sydbank's dividend yield stands in the top 25% of Danish market payers, yet its dividend history is marked by volatility and unreliability over the past decade. Despite this, dividends are currently covered by earnings with a payout ratio of 56.2%, projected to improve slightly to 50.7% in three years. Recent financials show declining net income and interest income, while a share buyback was completed for DKK 119 million, reflecting strategic capital management amidst fluctuating earnings.

• Dive into the specifics of Sydbank here with our thorough dividend report.
• Upon reviewing our latest valuation report, Sydbank's share price might be too pessimistic.

Bank Polska Kasa Opieki (WSE:PEO)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Bank Polska Kasa Opieki S.A. is a commercial bank offering banking products and services to retail and corporate clients in Poland, with a market cap of PLN47.77 billion.

Operations: Bank Polska Kasa Opieki S.A. generates revenue from Business Banking (PLN2.51 billion) and Corporate and Investment Banking (PLN2.64 billion).

Dividend Yield: 6.9%

Bank Polska Kasa Opieki's dividend payments have been volatile over the past decade, yet they are currently covered by earnings with a payout ratio of 50.5%. The bank trades at a good value compared to peers and is priced 45.8% below its estimated fair value. Recent financials reveal increased net interest income of PLN 3.41 billion and net income of PLN 1.69 billion for Q1 2025, indicating solid earnings despite a high level of bad loans at 4.3%.

• Navigate through the intricacies of Bank Polska Kasa Opieki with our comprehensive dividend report here.
• The valuation report we've compiled suggests that Bank Polska Kasa Opieki's current price could be quite moderate.

Bayerische Motoren Werke (XTRA:BMW)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Bayerische Motoren Werke Aktiengesellschaft develops, manufactures, and sells automobiles and motorcycles, along with spare parts and accessories globally, with a market cap of approximately €46.10 billion.

Operations: Bayerische Motoren Werke's revenue segments include Automotive (€123.19 billion), Motorcycles (€3.15 billion), and Financial Services (€39.16 billion).

Dividend Yield: 5.6%

BMW's dividend yield of 5.6% ranks in the top 25% of German dividend payers, though its payments have been volatile over the past decade. The company's dividends are well covered by earnings with a payout ratio of 37%, but lack coverage from free cash flows. Trading at a discount to its estimated fair value, BMW recently announced a €1.65 billion share buyback program and reported Q1 sales of €23.63 billion, down from last year.

• Delve into the full analysis dividend report here for a deeper understanding of Bayerische Motoren Werke.
• Our comprehensive valuation report raises the possibility that Bayerische Motoren Werke is priced lower than what may be justified by its financials.

Taking Advantage

• Click here to access our complete index of 238 Top European Dividend Stocks.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com