European Dividend Stocks To Enhance Your Portfolio

As European markets reach record levels, buoyed by a rally in technology stocks and expectations for lower U.S. borrowing costs, investors are increasingly eyeing dividend stocks to enhance their portfolios. In this environment, a good stock is often characterized by its ability to provide consistent income through dividends while also offering potential for capital appreciation amidst favorable market conditions.

Top 10 Dividend Stocks In Europe

Name	Dividend Yield	Dividend Rating
Zurich Insurance Group (SWX:ZURN)	4.34%	★★★★★★
Scandinavian Tobacco Group (CPSE:STG)	9.80%	★★★★★★
Holcim (SWX:HOLN)	4.76%	★★★★★★
HEXPOL (OM:HPOL B)	4.95%	★★★★★★
freenet (XTRA:FNTN)	7.00%	★★★★★☆
DKSH Holding (SWX:DKSH)	4.25%	★★★★★★
Credito Emiliano (BIT:CE)	5.40%	★★★★★☆
Cembra Money Bank (SWX:CMBN)	4.67%	★★★★★★
Bravida Holding (OM:BRAV)	4.06%	★★★★★★
Banca Popolare di Sondrio (BIT:BPSO)	5.88%	★★★★★☆

Click here to see the full list of 221 stocks from our Top European Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Zignago Vetro (BIT:ZV)

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

Overview: Zignago Vetro S.p.A., along with its subsidiaries, produces, markets, and sells hollow glass containers in Italy, Europe, and internationally with a market cap of €725.54 million.

Operations: Zignago Vetro S.p.A.'s revenue segments include €13.30 million from Vetro Revet Srl, €325.67 million from Zignago Vetro SpA, €4.50 million from Zignago Glass USA Inc., €4.09 million from Italian Glass Moulds Srl, €52.41 million from Zignago Vetro Brosse SAS, and €80.10 million from Zignago Vetro Polska S.A., with a consolidation adjustment of -€41.61 million.

Dividend Yield: 5.5%

Zignago Vetro's dividend yield of 5.47% ranks in the top 25% of Italian market payers, yet its sustainability is questionable due to a high payout ratio of 115.6%, indicating dividends are not well covered by earnings. Despite a low cash payout ratio of 48.7%, suggesting coverage by cash flows, past dividend payments have been volatile and unreliable over the last decade, with recent financial results showing declining sales and net income.

• Get an in-depth perspective on Zignago Vetro's performance by reading our dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Zignago Vetro shares in the market.

Orell Füssli (SWX:OFN)

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

Overview: Orell Füssli AG operates in security printing and technology, book retailing, and publishing across various regions including Switzerland, Germany, Europe, Africa, the Americas, Asia, and Oceania with a market cap of CHF228.34 million.

Operations: Orell Füssli AG generates revenue through its segments of Book Retailing (CHF127.49 million), Security Printing (CHF95.80 million), and Industrial Systems (CHF22.73 million).

Dividend Yield: 3.8%

Orell Füssli's dividend payments are well covered by earnings and cash flows, with a payout ratio of 44.9% and a cash payout ratio of 58.5%. The company's recent earnings report showed significant growth, with net income rising to CHF 6.69 million from CHF 1.59 million a year ago, supporting its capacity to maintain dividends despite past volatility. However, the dividend yield of 3.78% is below the top tier in the Swiss market, reflecting its less stable track record over the past decade.

• Click to explore a detailed breakdown of our findings in Orell Füssli's dividend report.
• Our valuation report unveils the possibility Orell Füssli's shares may be trading at a premium.

Andritz (WBAG:ANDR)

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

Overview: Andritz AG is a global company that provides industrial machinery, equipment, and services across multiple continents with a market cap of €6.08 billion.

Operations: Andritz AG's revenue is primarily derived from its segments in Pulp & Paper (€3.10 billion), Metals (€1.71 billion), Hydro Power (€1.65 billion), and Environment & Energy (€1.52 billion).

Dividend Yield: 4.2%

Andritz's dividend payments, while covered by earnings with a 55% payout ratio, have shown volatility over the past decade. The cash payout ratio stands at 83.7%, indicating dividends are also supported by cash flows. Despite recent earnings showing a decline, Andritz maintains its guidance for full-year revenue between €8 billion and €8.3 billion. The dividend yield of 4.17% is slightly below Austria's top tier, reflecting its inconsistent dividend history despite growth in payments over ten years.

• Unlock comprehensive insights into our analysis of Andritz stock in this dividend report.
• The analysis detailed in our Andritz valuation report hints at an deflated share price compared to its estimated value.

Turning Ideas Into Actions

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Interested In Other Possibilities?

• 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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