Stock Analysis

3 Leading Dividend Stocks On Euronext Amsterdam Yielding Up To 7.0%

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As global markets react to China's recent stimulus measures, European indices, including the pan-European STOXX Europe 600 Index, have experienced a notable rebound. Amidst this backdrop of shifting economic sentiment and potential interest rate cuts in Europe, dividend stocks on Euronext Amsterdam present compelling opportunities for income-focused investors. When evaluating dividend stocks, it's important to consider their yield stability and the underlying company's ability to maintain payouts in varying market conditions.

Top 5 Dividend Stocks In The Netherlands

NameDividend YieldDividend Rating
Koninklijke Heijmans (ENXTAM:HEIJM)3.44%★★★★☆☆
Randstad (ENXTAM:RAND)5.19%★★★★☆☆
ABN AMRO Bank (ENXTAM:ABN)9.70%★★★★☆☆
Signify (ENXTAM:LIGHT)7.03%★★★★☆☆
Aalberts (ENXTAM:AALB)3.19%★★★★☆☆
ING Groep (ENXTAM:INGA)6.99%★★★★☆☆
Acomo (ENXTAM:ACOMO)6.53%★★★★☆☆

Click here to see the full list of 7 stocks from our Top Euronext Amsterdam Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Koninklijke Heijmans (ENXTAM:HEIJM)

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

Overview: Koninklijke Heijmans N.V. operates in property development, construction, and infrastructure sectors both within the Netherlands and internationally, with a market cap of €693.45 million.

Operations: Koninklijke Heijmans N.V. generates revenue from its Connecting segment, amounting to €871.03 million.

Dividend Yield: 3.4%

Koninklijke Heijmans has demonstrated strong earnings growth, with net income doubling to €37 million for H1 2024. Despite a volatile dividend history and a yield of 3.44%, which is low compared to the Dutch market's top tier, its dividends are well-covered by both earnings and cash flows, with payout ratios at 30% and 20.7% respectively. Trading significantly below estimated fair value enhances its appeal for value-focused investors seeking dividend coverage stability.

ENXTAM:HEIJM Dividend History as at Oct 2024

Signify (ENXTAM:LIGHT)

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

Overview: Signify N.V. is a company that offers lighting products, systems, and services across Europe, the Americas, and internationally with a market cap of €2.78 billion.

Operations: Signify N.V.'s revenue is primarily derived from its Conventional segment, which generated €519 million.

Dividend Yield: 7.0%

Signify's dividends are well-covered by earnings and cash flows, with payout ratios at 80.4% and 34.2% respectively, despite a volatile dividend history over the past eight years. Trading at 62.4% below estimated fair value, it offers a high dividend yield of 7.03%, placing it in the top quartile among Dutch dividend payers. However, its recent removal from the FTSE All-World Index may raise concerns about its long-term stability for investors seeking reliable income streams.

ENXTAM:LIGHT Dividend History as at Oct 2024

Randstad (ENXTAM:RAND)

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

Overview: Randstad N.V. offers solutions in work and human resources services with a market cap of €7.71 billion.

Operations: Randstad N.V.'s revenue is generated from its comprehensive human resources services and workforce solutions.

Dividend Yield: 5.2%

Randstad's dividends, covered by both earnings and cash flows with payout ratios of 81.3% and 51.5% respectively, have shown volatility over the past decade despite recent growth. With a dividend yield of 5.19%, it falls short compared to top Dutch payers but trades at a significant discount to estimated fair value. Recent strategic partnerships, like with iZafe Group AB in Norway, highlight Randstad’s focus on leveraging its human resource expertise for innovative healthcare solutions amidst fluctuating financial performance.

ENXTAM:RAND Dividend History as at Oct 2024

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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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