3 European Dividend Stocks Yielding Up To 7.8%

The European market has shown resilience, with the pan-European STOXX Europe 600 Index ending higher after two weeks of losses, driven by hopes of increased government spending despite concerns over U.S. tariffs. In this environment of mixed economic signals and cautious central bank policies, dividend stocks can offer a stable income stream for investors seeking reliable returns amidst uncertainty.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 243 stocks from our Top European Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Sonae SGPS (ENXTLS:SON)

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

Overview: Sonae SGPS operates in retail, financial services, technology, shopping centers, and telecommunications with a market cap of €2.05 billion.

Operations: Sonae SGPS generates revenue from various segments, with its primary contributions coming from MC at €7.60 billion and Worten at €1.40 billion.

Dividend Yield: 5.6%

Sonae SGPS offers a stable and reliable dividend, with payments consistently growing over the past decade. The dividend is well-covered by both earnings and cash flows, with payout ratios of 28.9% and 27.5%, respectively. While its 5.59% yield is slightly below the top tier in Portugal, it remains attractive due to its stability and growth history. Trading at a favorable P/E ratio of 9.2x compared to the Portuguese market's 11.6x enhances its value proposition for investors seeking dividends.

• Click here to discover the nuances of Sonae SGPS with our detailed analytical dividend report.
• Our valuation report here indicates Sonae SGPS may be undervalued.

Rubis (ENXTPA:RUI)

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

Overview: Rubis operates bulk liquid storage facilities for commercial and industrial customers across Europe, Africa, and the Caribbean, with a market cap of €2.76 billion.

Operations: Rubis generates revenue from its operations in bulk liquid storage facilities serving commercial and industrial clients across Europe, Africa, and the Caribbean.

Dividend Yield: 7.6%

Rubis offers a high and reliable dividend yield of 7.59%, ranking in the top 25% of French market payers, with stable payments over the past decade. The payout is sustainable, covered by earnings (61.5%) and cash flows (50.2%). Despite a forecasted decline in earnings, Rubis has increased its dividend for 29 consecutive years, recently proposing €2.03 per share for fiscal year 2024. The company is pursuing M&A opportunities with proceeds from asset disposals to support future growth initiatives in low-carbon electricity production amidst evolving market dynamics.

• Dive into the specifics of Rubis here with our thorough dividend report.
• Our comprehensive valuation report raises the possibility that Rubis is priced lower than what may be justified by its financials.

EDAG Engineering Group (XTRA:ED4)

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

Overview: EDAG Engineering Group AG specializes in the development of vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle industries globally, with a market cap of €175 million.

Operations: EDAG Engineering Group AG generates its revenue from three main segments: Vehicle Engineering (€488.72 million), Production Solutions (€280.93 million), and Electrics/Electronics (€102.73 million).

Dividend Yield: 7.9%

EDAG Engineering Group's dividend yield of 7.86% places it in the top 25% of German market payers, though its nine-year history shows volatility and declining payments. Despite this, dividends are well-covered by earnings (65.1%) and cash flows (18%), suggesting sustainability. The company trades at a favorable price-to-earnings ratio of 8.3x compared to the German market's 17.7x, indicating good relative value despite lower profit margins than last year.

• Click here and access our complete dividend analysis report to understand the dynamics of EDAG Engineering Group.
• Insights from our recent valuation report point to the potential undervaluation of EDAG Engineering Group shares in the market.

Make It Happen

• Unlock more gems! Our Top European Dividend Stocks screener has unearthed 240 more companies for you to explore.Click here to unveil our expertly curated list of 243 Top European Dividend Stocks.
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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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