Top European Dividend Stocks To Watch In May 2025

As European markets continue to navigate a complex landscape of trade tensions and economic policy shifts, the pan-European STOXX Europe 600 Index has shown resilience, rising for a fourth consecutive week. In this environment, dividend stocks can offer investors potential stability and income, making them an attractive consideration amid market fluctuations.

Top 10 Dividend Stocks In Europe

Name	Dividend Yield	Dividend Rating
Bredband2 i Skandinavien (OM:BRE2)	4.39%	★★★★★★
Zurich Insurance Group (SWX:ZURN)	4.57%	★★★★★★
Julius Bär Gruppe (SWX:BAER)	4.42%	★★★★★★
Rubis (ENXTPA:RUI)	6.78%	★★★★★★
Allianz (XTRA:ALV)	4.39%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.01%	★★★★★★
S.N. Nuclearelectrica (BVB:SNN)	9.40%	★★★★★★
HEXPOL (OM:HPOL B)	4.71%	★★★★★★
OVB Holding (XTRA:O4B)	4.50%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.67%	★★★★★★

Click here to see the full list of 234 stocks from our Top European Dividend Stocks screener.

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

Unicaja Banco (BME:UNI)

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

Overview: Unicaja Banco, S.A. operates in the retail banking sector in Spain and has a market capitalization of €4.85 billion.

Operations: Unicaja Banco, S.A. generates €1.99 billion from its retail banking segment in Spain.

Dividend Yield: 7.8%

Unicaja Banco's dividend yield is among the top 25% in Spain, supported by a reasonable payout ratio of 61.7%, ensuring dividends are covered by earnings. However, its dividend history is volatile and has been unreliable over the past seven years. Despite recent earnings growth of €158 million for Q1 2025, concerns include a high level of bad loans at 2.5% and potential instability from ongoing M&A rumors with Banco de Sabadell.

• Delve into the full analysis dividend report here for a deeper understanding of Unicaja Banco.
• Our valuation report unveils the possibility Unicaja Banco's shares may be trading at a discount.

HEXPOL (OM:HPOL B)

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

Overview: HEXPOL AB (publ) is engaged in the development, manufacturing, and sale of polymer compounds and engineered products like gaskets, seals, and wheels across Sweden, Europe, the United States, the Americas, and Asia with a market cap of SEK30.72 billion.

Operations: HEXPOL AB generates revenue primarily from its HEXPOL Compounding segment, which accounts for SEK19.39 billion, and its HEXPOL Engineered Products segment, contributing SEK1.70 billion.

Dividend Yield: 4.7%

HEXPOL offers a stable dividend yield of 4.71%, ranking in the top 25% of Swedish dividend payers, with a sustainable payout ratio supported by both earnings and cash flows. The company has consistently increased its dividends over the past decade. Recent approval for the acquisition of Kabkom highlights its strategic focus on growth through M&A, while maintaining financial stability to support future dividend payments despite slight declines in Q1 2025 net income to SEK 602 million.

• Click to explore a detailed breakdown of our findings in HEXPOL's dividend report.
• The analysis detailed in our HEXPOL valuation report hints at an deflated share price compared to its estimated value.

Phoenix Mecano (SWX:PMN)

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

Overview: Phoenix Mecano AG, along with its subsidiaries, manufactures and sells components for industrial customers globally, with a market capitalization of CHF434.25 million.

Operations: Phoenix Mecano AG's revenue is primarily derived from its Dewertokin Technology Group segment at €376.73 million, followed by Enclosure Systems at €216.73 million and Industrial Components at €184.92 million.

Dividend Yield: 4.1%

Phoenix Mecano announced a CHF 19.00 per share dividend, though its high cash payout ratio of 97.7% raises concerns about sustainability despite a reasonable earnings coverage. The dividend yield of 4.08% is competitive in the Swiss market, but past payments have been volatile and unreliable over the last decade. Recent earnings showed a decline, with net income at €34.55 million for 2024 compared to €45.17 million previously, potentially impacting future payouts stability.

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

Key Takeaways

• Take a closer look at our Top European Dividend Stocks list of 234 companies by clicking here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Looking For Alternative Opportunities?

• 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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