European Dividend Stocks To Consider For Your Portfolio

As European markets experience a resurgence, with the STOXX Europe 600 Index climbing 3.93% over a week due to delayed tariff impositions and ECB rate cuts, investor sentiment is buoyed by the prospect of more accommodative monetary policies. In this environment, dividend stocks can offer stability and income potential, making them an appealing option for those seeking to navigate trade uncertainties while benefiting from consistent returns.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 244 stocks from our Top European Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Galp Energia SGPS (ENXTLS:GALP)

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

Overview: Galp Energia SGPS is an integrated energy operator based in Portugal with international operations, and it has a market cap of approximately €9.38 billion.

Operations: Galp Energia SGPS generates revenue through several segments, including Upstream (€3.56 billion), Commercial (€10.15 billion), Industrial & Midstream (€9.32 billion), and Renewables and New Businesses (€92 million).

Dividend Yield: 5%

Galp Energia's dividend sustainability is supported by a low payout ratio of 45.4% and cash payout ratio of 41.1%, indicating coverage by earnings and cash flows, though its dividend history has been volatile over the past decade. Recent developments include a partnership with Powin to enhance renewable energy capabilities, which may bolster long-term growth prospects despite current earnings challenges. Galp trades below estimated fair value but offers a lower yield compared to top Portuguese dividend payers.

• Click here to discover the nuances of Galp Energia SGPS with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Galp Energia SGPS' current price could be quite moderate.

Infotel (ENXTPA:INF)

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

Overview: Infotel SA is a company that designs, develops, markets, and maintains software solutions focused on security, performance, and management globally with a market cap of €298.81 million.

Operations: Infotel SA generates revenue primarily from its Services segment, which accounts for €281.50 million, and its Software segment, contributing €13.30 million.

Dividend Yield: 4.7%

Infotel SA's dividend payments are covered by earnings and cash flows, with a payout ratio of 83.3% and a cash payout ratio of 44.3%. Despite recent net income growth to €18.5 million for 2024, dividends have been volatile over the past decade, lacking reliability and stability. The dividend yield of 4.67% is below the top French market payers, though Infotel trades at an attractive valuation, 18.8% below its estimated fair value.

• Unlock comprehensive insights into our analysis of Infotel stock in this dividend report.
• According our valuation report, there's an indication that Infotel's share price might be on the cheaper side.

Kaufman & Broad (ENXTPA:KOF)

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

Overview: Kaufman & Broad S.A. operates as a property developer and builder in France, with a market cap of €649.59 million.

Operations: Kaufman & Broad S.A. generates its revenue through property development and construction activities in France.

Dividend Yield: 6.6%

Kaufman & Broad S.A.'s dividend yield of 6.6% ranks among the top in France, yet it faces sustainability challenges with a high payout ratio of 95.2%, indicating dividends are not well covered by earnings. Despite a low cash payout ratio of 15.2%, suggesting coverage by cash flows, dividends have been volatile over the past decade, including a recent decrease to €2.20 per share for June 2025. Recent earnings growth and stable guidance offer some optimism amidst these concerns.

• Navigate through the intricacies of Kaufman & Broad with our comprehensive dividend report here.
• In light of our recent valuation report, it seems possible that Kaufman & Broad is trading behind its estimated value.

Summing It All Up

• Delve into our full catalog of 244 Top European Dividend Stocks here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

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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