3 European Dividend Stocks Yielding Up To 5.6%

As European markets continue their longest streak of weekly gains since 2012, buoyed by encouraging company results and resilience in certain sectors, investors are increasingly looking towards dividend stocks as a potential source of stable income amid mixed economic signals. In this environment, identifying solid dividend-paying companies can be an effective strategy for those seeking to balance growth with consistent returns.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 216 stocks from our Top European Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Vinci (ENXTPA:DG)

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

Overview: Vinci SA operates in concessions, energy, and construction sectors both in France and internationally, with a market cap of €66.03 billion.

Operations: Vinci's revenue is primarily derived from its segments: Cobra IS (€7.11 billion), VINCI Energies (€20.37 billion), Concessions including VINCI Airports (€4.88 billion) and VINCI Autoroutes (€7.11 billion), and VINCI Construction, which includes Eurovia, contributing €31.78 billion.

Dividend Yield: 4%

Vinci SA's dividend outlook is supported by a payout ratio of 55.7%, indicating dividends are well-covered by earnings, and a cash payout ratio of 34.9%, ensuring coverage by cash flows. Despite past volatility in dividend payments, the company has proposed a €4.75 per share dividend for 2024, reflecting confidence in future prospects. Recent financial results show sales at €72.46 billion and net income at €4.86 billion for 2024, with steady traffic growth across its airport and autoroute operations bolstering revenue potential.

• Get an in-depth perspective on Vinci's performance by reading our dividend report here.
• According our valuation report, there's an indication that Vinci's share price might be on the cheaper side.

Manitou BF (ENXTPA:MTU)

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

Overview: Manitou BF SA, along with its subsidiaries, develops, manufactures, and provides equipment and services globally with a market capitalization of €922.21 million.

Operations: Manitou BF generates its revenue primarily from two segments: the Products Division, which accounts for €2.47 billion, and the Services & Solutions (S&S) Division, contributing €395.12 million.

Dividend Yield: 5.6%

Manitou BF's dividend yield of 5.6% is slightly below the top quartile of French dividend payers, yet it remains covered by both earnings (payout ratio: 31.7%) and cash flows (cash payout ratio: 65.5%). Despite an increase in dividends over the past decade, its track record is marked by volatility. The company trades at a favorable valuation with a price-to-earnings ratio of 5.7x compared to the French market average of 14.7x, although high debt levels and forecasted earnings decline pose challenges.

• Navigate through the intricacies of Manitou BF with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that Manitou BF is priced lower than what may be justified by its financials.

Cancom (XTRA:COK)

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

Overview: Cancom SE, with a market cap of €878.65 million, provides information technology services through its subsidiaries in Germany and internationally.

Operations: Cancom SE generates revenue from its Wholesale - Computer Peripherals segment, amounting to €1.72 billion.

Dividend Yield: 3.6%

Cancom's dividend yield of 3.59% is below the top quartile in Germany, but it remains well-covered by both earnings (payout ratio: 87.1%) and cash flows (cash payout ratio: 22.8%). The company has maintained stable and reliable dividends over the past decade, with consistent growth in payments. Trading at 12.1% below its estimated fair value, Cancom offers a potentially attractive entry point for investors seeking steady income amidst moderate earnings growth forecasts.

• Click here and access our complete dividend analysis report to understand the dynamics of Cancom.
• According our valuation report, there's an indication that Cancom's share price might be on the expensive side.

Turning Ideas Into Actions

• Navigate through the entire inventory of 216 Top European Dividend Stocks here.
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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.

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