3 European Dividend Stocks Yielding Up To 5.2%

As European markets face challenges from geopolitical tensions and rising energy costs, investors are increasingly looking for stability in dividend stocks. These stocks can offer a reliable income stream, making them attractive during times of economic uncertainty.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 201 stocks from our Top European Dividend Stocks screener.

Here’s a peek at a few of the choices from the screener.

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

Overview: Alm. Brand A/S, along with its subsidiaries, offers non-life insurance products and services in Denmark and has a market cap of DKK21.04 billion.

Operations: Alm. Brand A/S generates revenue from its non-life insurance operations in Denmark, with DKK6.32 billion coming from the personal segment and DKK5.54 billion from the commercial segment.

Dividend Yield: 4.3%

Alm. Brand’s dividend prospects present a mixed picture. While the company offers a competitive dividend yield of 4.3%, placing it in the top 25% of Danish payers, its track record is unstable with volatile payments over the past decade. The current payout ratio of 77.7% suggests dividends are covered by earnings and cash flows, but recent earnings have been impacted by large one-off items, raising concerns about sustainability despite recent increases in payouts and strategic initiatives like expanding the LeakBot program to reduce claims costs.

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

Overview: Publicis Groupe S.A. is a global company offering marketing, communications, and digital business transformation services across various regions including North America, Europe, the Asia Pacific, Latin America, Africa, and the Middle East with a market cap of approximately €20.34 billion.

Operations: Publicis Groupe S.A. generates revenue primarily through its Advertising and Communication Services segment, which accounts for €17.40 billion.

Dividend Yield: 4.6%

Publicis Groupe’s dividend payments have been volatile over the past decade, though recent increases are supported by a low cash payout ratio of 34.6%, indicating strong coverage by cash flows. Despite offering a dividend yield of 4.59%, which is below the top tier in France, the company’s dividends are well-covered by earnings with a payout ratio of 57%. Recent strategic partnerships and leadership changes may enhance growth prospects, potentially benefiting future dividends.

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

Overview: Orkla ASA is an industrial investment company focused on brands and consumer-oriented businesses globally, with a market cap of NOK111.22 billion.

Operations: Orkla ASA’s revenue segments include Orkla Foods (NOK20.86 billion), Orkla India (NOK2.98 billion), Orkla Health (NOK7.66 billion), Orkla Snacks (NOK10.48 billion), Orkla House Care (NOK1.66 billion), Orkla Real Estate under Financial Investments (NOK450 million), Orkla Food Ingredients (NOK21.26 billion), Orkla Home & Personal Care (NOK2.82 billion), The European Pizza Company (NOK3.15 billion) and the Health and Sports Nutrition Group (NOK1.29 billion).

Dividend Yield: 5.3%

Orkla’s dividend payments have been volatile over the past decade, yet they are currently covered by both earnings and cash flows, with a payout ratio of 62.8% and a cash payout ratio of 87.6%. Despite a dividend yield of 5.3%, which is lower than top-tier Norwegian payers, recent approvals for an ordinary NOK 4.00 per share and special NOK 2.00 per share dividends highlight shareholder returns amidst leadership changes following Stein Erik Hagen’s passing.

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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.

Companies discussed in this article include CPSE:ALMB ENXTPA:PUB and OB:ORK.

This article was originally published by Simply Wall St.

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