Chasing high dividends allows investors to earn passive income regardless of the financial market. Here are 3 European stocks to watch.
What are the best dividend stocks on European stock markets today?
To stimulate economic growth, the European Central Bank has cut interest rates for the third time since June and brought the main refinancing rate to 3.40%. This move is pushing the main European stock indices to period highs, making it increasingly difficult to choose which stocks to include in the portfolio.
In a context in which uncertainty on the financial markets is at its highest levels since August, with the Stoxx 50 Volatility Index (VSTOXX) - the volatility index equivalent to the Cboe USA VIX - growing compared to the first months of 2024, investors looking for yield can focus on high-dividend stocks that guarantee stable income flows over the long term.
Below we look at 3 European stocks that offer a high dividend yield, such that you can earn at least $1,000 in dividends if you invest $5,000 in each stock.
- Volatility Stoxx 50
- Source: Stoxx
1. Acomo NV
- ACOMO graph
- Source: Tradingview
- Dividend yield: 6.64%
Acomo NV is a food distribution company based in the Netherlands but operating in several regions in Europe and North America. With a market capitalization of $512.39 million, its revenues come mainly from the segments of spices and nuts ($445.76 million), organic ingredients ($429.28 million), and edible seeds ($246.52 million). The quarterly dividend now stands at €0.29 per share, but shareholder remuneration has been quite volatile over the past 10 years.
While it offers a dividend yield of 6.64%, it has a payout ratio of 95.7%, which raises questions about the future sustainability of these dividends. However, the company’s growth potential presents an attractive opportunity for investors seeking income streams. Investing $5,000 in Acomo can provide an annual return of around $332.
2. Signify NV
- ACOMO graph
- Source: Tradingview
- Dividend yield: 6.92%
Signify NV is a Dutch multinational LED lighting company, formed in 2016 through the spin-off of Philips’ lighting division. With a market capitalization of around $2.83 billion, revenues from conventional lighting products of $519 million reflect a solid financial basis.
With a dividend yield of 6.92%, it offers an excellent opportunity for investors seeking passive income. The company operates primarily in the lighting products and systems sector, with annual sales exceeding $6 billion. Recently, Signify has launched innovative initiatives in the field of sustainability, thus increasing its appeal among consumers and businesses. Despite a cash payout ratio of 34.2% that ensures dividend coverage through cash flows and an earnings payout ratio of 80.4%, the company’s financial performance shows signs of volatility, with declining sales and increasing net income.
Historically, the company has a consistent dividend policy and represents an attractive opportunity for investors. Investing $5,000 in Signify can result in an annual return of approximately $346, thus contributing to a diversified and profitable portfolio.
3. ING Group
- ING Group graph
- Source: Tradingview
- Dividend yield: 6.92%
ING Group is one of the world’s leading banking institutions, with a market capitalization of over $50 billion. Its dividend yield stands at 6.92%, placing it among the top dividend payers in the Netherlands. With a current payout ratio of 69.8%, ING offers good dividend coverage, with expectations of improvement to 49.3% over the next three years.
ING offers a variety of banking services across Europe and, despite market volatility, has shown remarkable resilience thanks to the diversification of its operations and strong management. With its $2.49 billion share buyback program, the bank demonstrates its desire to return value to shareholders. A $5,000 investment in ING shares could provide a flow of EUR 346 in annual dividends.
|DISCLAIMER
The information and considerations contained in this article must not be used as the sole or main basis for making investment decisions. The reader retains full freedom in his or her investment choices and full responsibility in making them, since only he or she knows his or her risk appetite and time horizon. The information contained in the article is provided for information purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public to save.|
Original article published on Money.it Italy 2024-10-28 07:26:00. Original title: Se investi 5.000€ in questi titoli guadagni almeno 1.000€ dai dividendi
