As European markets experience a boost from the prospect of lower U.S. borrowing costs, with indices like the STOXX Europe 600 Index and the UK's FTSE 100 reaching new highs, investors are increasingly turning their attention to dividend stocks for stable returns amid fluctuating consumer confidence and inflationary pressures. In this environment, selecting dividend stocks that offer consistent payouts and have a strong track record of performance can be an effective strategy for those seeking to balance growth with income in their portfolios.
Top 10 Dividend Stocks In Europe
| Name | Dividend Yield | Dividend Rating |
| Zurich Insurance Group (SWX:ZURN) | 4.19% | ★★★★★★ |
| Telekom Austria (WBAG:TKA) | 4.17% | ★★★★★☆ |
| Swiss Re (SWX:SREN) | 4.00% | ★★★★★☆ |
| Rubis (ENXTPA:RUI) | 6.96% | ★★★★★★ |
| Les Docks des Pétroles d'Ambès -SA (ENXTPA:DPAM) | 5.23% | ★★★★★★ |
| Holcim (SWX:HOLN) | 4.62% | ★★★★★★ |
| HEXPOL (OM:HPOL B) | 4.90% | ★★★★★★ |
| DKSH Holding (SWX:DKSH) | 4.01% | ★★★★★★ |
| Credito Emiliano (BIT:CE) | 5.36% | ★★★★★☆ |
| Cembra Money Bank (SWX:CMBN) | 4.58% | ★★★★★★ |
Click here to see the full list of 214 stocks from our Top European Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
Kemira Oyj (HLSE:KEMIRA)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Kemira Oyj is a chemicals company operating across Finland, the rest of Europe, the Middle East, Africa, the Americas, and the Asia Pacific with a market cap of €3.12 billion.
Operations: Kemira Oyj generates revenue from its Water Solutions segment, which amounts to €1.25 billion.
Dividend Yield: 3.6%
Kemira Oyj offers a stable dividend profile with consistent payments over the past decade and a reasonable payout ratio of 50.8%, indicating dividends are well-covered by earnings and cash flows. Despite a lower yield of 3.64% compared to top Finnish payers, its dividend reliability is attractive for income-focused investors. Recent share buyback programs aim to optimize capital structure, though revised guidance suggests caution as revenue projections have been lowered for 2025 amidst declining earnings.
- Navigate through the intricacies of Kemira Oyj with our comprehensive dividend report here.
- According our valuation report, there's an indication that Kemira Oyj's share price might be on the cheaper side.
Afry (OM:AFRY)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Afry AB offers engineering, design, and advisory services across the infrastructure, industry, and energy sectors globally with a market cap of SEK17.42 billion.
Operations: Afry AB's revenue is primarily derived from its Infrastructure segment at SEK10.38 billion, followed by Industrial & Digital Solutions at SEK6.63 billion, Process Industries at SEK4.94 billion, Energy at SEK3.94 billion, and Management Consulting at SEK1.59 billion.
Dividend Yield: 3.9%
Afry's dividend yield of 3.9% places it among the top Swedish payers, though its track record is unstable with past volatility exceeding 20%. Despite this, dividends are well-covered by earnings (payout ratio: 72.2%) and cash flows (cash payout ratio: 37.1%). Recent earnings show a decline, with Q2 net income at SEK 193 million versus SEK 377 million last year. The company is expanding its headquarters in Solna, Sweden, enhancing future operational capacity.
- Dive into the specifics of Afry here with our thorough dividend report.
- Insights from our recent valuation report point to the potential undervaluation of Afry shares in the market.
AB SKF (OM:SKF B)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: AB SKF (publ) is a global company that designs, manufactures, and sells bearings and units, seals, lubrication systems, condition monitoring, and services with a market cap of approximately SEK112.32 billion.
Operations: AB SKF generates revenue from two primary segments: Automotive, which accounts for SEK27.82 billion, and Industrial, contributing SEK67.73 billion.
Dividend Yield: 3.1%
AB SKF's dividend yield of 3.14% is below the top tier in Sweden, and its dividend history has been unreliable with volatility over the past decade. However, dividends are well-covered by earnings (payout ratio: 65.7%) and cash flows (cash payout ratio: 57.7%). Recent earnings show a decline, with Q2 net income at SEK 516 million compared to SEK 1,529 million last year. Notably, SKF is advancing in renewable energy technology through its partnership with Proteus Marine Renewables for tidal energy projects.
- Take a closer look at AB SKF's potential here in our dividend report.
- Upon reviewing our latest valuation report, AB SKF's share price might be too pessimistic.
Taking Advantage
- Click here to access our complete index of 214 Top European Dividend Stocks.
- Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
- Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.
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.
Valuation is complex, but we're here to simplify it.
Discover if AB SKF might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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