3 European Dividend Stocks With Up To 6.9% Yield

As European markets navigate a mixed landscape with the pan-European STOXX Europe 600 Index slightly higher and varying performances across major indexes, investors are increasingly focused on stable income sources amid economic uncertainties. In this context, dividend stocks can offer attractive yields and potential stability, making them a compelling choice for those seeking to balance risk and reward in their portfolios.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 228 stocks from our Top European Dividend Stocks screener.

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

Banca Popolare di Sondrio (BIT:BPSO)

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

Overview: Banca Popolare di Sondrio S.p.A. operates in Italy, offering a range of banking products and services to households, small and medium-sized enterprises, and institutions, with a market cap of €6.06 billion.

Operations: Banca Popolare di Sondrio's revenue is primarily derived from its Central Structure (€661.57 million), Companies (€472.14 million), Individuals and Other Customers (€305.69 million), and Securities Sector (€140.30 million).

Dividend Yield: 5.7%

Banca Popolare di Sondrio's dividend yield of 5.65% ranks among the top 25% in Italy, appealing to income-focused investors despite a volatile dividend history over the past decade. The bank maintains a reasonable payout ratio of 55.7%, suggesting dividends are currently covered by earnings, though future coverage is expected at 85%. Recent earnings growth and an attractive price-to-earnings ratio enhance its appeal, but high non-performing loans and low bad loan allowance warrant caution.

• Navigate through the intricacies of Banca Popolare di Sondrio with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that Banca Popolare di Sondrio is priced higher than what may be justified by its financials.

CFM Indosuez Wealth Management (ENXTPA:MLCFM)

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

Overview: CFM Indosuez Wealth Management SA, along with its subsidiaries, provides banking and financial solutions in Monaco and internationally, with a market cap of €716.25 million.

Operations: CFM Indosuez Wealth Management SA generates revenue primarily from its Wealth Management segment, totaling €196.43 million.

Dividend Yield: 5.8%

CFM Indosuez Wealth Management offers a dividend yield of 5.82%, placing it in the top 25% of French dividend payers. Despite a reasonable payout ratio of 73.6% indicating current earnings coverage, the dividend history has been volatile and unreliable over the past decade. The price-to-earnings ratio at 12.9x is attractive compared to the broader French market, although a low bad loan allowance at 48% suggests potential risk factors for investors to consider.

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

Develia (WSE:DVL)

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

Overview: Develia S.A. operates in Poland through its subsidiaries, focusing on buying, developing, renting, managing, and selling real estate properties with a market cap of PLN3.80 billion.

Operations: Develia S.A. generates revenue primarily from its Real Estate Development Activity, which amounts to PLN1.91 billion.

Dividend Yield: 6.9%

Develia's dividend yield of 6.91% is slightly below Poland's top 25% dividend payers, and its history shows volatility with annual drops over 20%. Despite this, dividends have grown over the past decade and are covered by earnings and cash flows with payout ratios of 65.3% and 69%, respectively. Recent earnings growth supports sustainability, but investors should note past unreliability in payments. Develia trades at a significant discount to estimated fair value, suggesting potential upside.

• Click here to discover the nuances of Develia with our detailed analytical dividend report.
• Our expertly prepared valuation report Develia implies its share price may be lower than expected.

Where To Now?

• Get an in-depth perspective on all 228 Top European Dividend Stocks by using our screener here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Ready For A Different Approach?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com