Top European Dividend Stocks Offering Up To 6.4% Yield

As European markets navigate the complexities of interest rate policies and trade uncertainties, the pan-European STOXX Europe 600 Index has remained relatively stable, reflecting a cautious investor sentiment. In such an environment, dividend stocks can offer a measure of stability and income potential, making them attractive to investors seeking reliable returns amidst market fluctuations.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 231 stocks from our Top European Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Erste Group Bank (WBAG:EBS)

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

Overview: Erste Group Bank AG offers a variety of banking and financial services to retail, corporate, and public sector clients, with a market cap of approximately €33.09 billion.

Operations: Erste Group Bank AG generates revenue from several segments, including Retail (€4.93 billion), Corporates (€2.34 billion), Group Markets (€812 million), and Savings Banks (€2.36 billion).

Dividend Yield: 3.5%

Erste Group Bank offers a stable dividend profile, with dividends reliably paid over the past decade and a current payout ratio of 40.6%, indicating strong coverage by earnings. Despite a lower dividend yield of 3.52% compared to top Austrian payers, its dividends are forecasted to remain well-covered in three years at 43.1%. Recent earnings show modest growth, supporting its sustainable dividend strategy amidst high bad loan levels and low allowance for such loans.

• Get an in-depth perspective on Erste Group Bank's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Erste Group Bank's share price might be too pessimistic.

SBO (WBAG:SBO)

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

Overview: SBO AG is a global manufacturer and seller of steel products, with a market capitalization of €426.29 million.

Operations: SBO AG generates its revenue from two main segments: Energy Equipment, contributing €318.24 million, and Precision Technology, accounting for €320.90 million.

Dividend Yield: 6.5%

SBO's dividend yield is among the top 25% in Austria, though its payments have been volatile over the past decade. Despite this instability, dividends are well-covered by a payout ratio of 70.9% and a cash payout ratio of 49.4%. Earnings growth forecast at 20.3% annually suggests potential improvement in stability. Recent earnings reported declines with sales at €253.62 million and net income at €18.53 million for the first half of 2025, reflecting challenges that may impact future payouts.

• Click here and access our complete dividend analysis report to understand the dynamics of SBO.
• Our valuation report here indicates SBO may be undervalued.

Hannover Rück (XTRA:HNR1)

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

Overview: Hannover Rück SE, with a market cap of €30.68 billion, offers reinsurance products and services across various regions including Germany, the UK, France, Europe, the US, Asia, Australia, Africa and internationally.

Operations: Hannover Rück SE generates revenue through its Life and Health Reinsurance segment, which accounts for €7.92 billion, and its Property & Casualty Reinsurance segment, contributing €19.80 billion.

Dividend Yield: 3.5%

Hannover Rück offers a stable dividend with consistent growth over the past decade, supported by a low payout ratio of 34% and cash payout ratio of 20.6%, ensuring sustainability from both earnings and cash flows. Despite its reliable track record, the dividend yield of 3.54% is below the top tier in Germany. Recent earnings show strong performance with net income reaching €833.5 million in Q2 2025, indicating robust financial health to support future dividends.

• Click here to discover the nuances of Hannover Rück with our detailed analytical dividend report.
• The analysis detailed in our Hannover Rück valuation report hints at an deflated share price compared to its estimated value.

Next Steps

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Looking For Alternative Opportunities?

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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.

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