3 European Dividend Stocks With Up To 9.8% Yield

In the ever-evolving landscape of European markets, dividend stocks have emerged as a beacon of stability and income for investors navigating economic uncertainties. With the pan-European STOXX Europe 600 Index showing a modest recovery of 0.56%, driven by hopes of increased government spending despite looming U.S. tariffs, dividend stocks are more appealing than ever. Let's dive into three European dividend stocks that offer yields up to 9.8%, providing a blend of income and potential growth.



1. equinor (OB:EQNR)

Equinor, a Norwegian energy giant, tops our list with an impressive dividend yield of 9.8%. The company's operations span exploration, production, transportation, refining, and marketing of petroleum and other energy forms, both in Norway and globally. With a market capitalization of NOK734.03 billion, Equinor is a formidable player in the energy sector.

Key Metrics:
- Dividend Yield: 9.8%
- Payout Ratio: 45.5%
- Cash Flow Coverage: 86.4%

Equinor's dividend yield ranks in the top 25% of Norwegian payers, supported by a payout ratio that indicates coverage by earnings. However, the company's dividend history is marked by volatility over the past decade, suggesting an unstable track record despite recent increases. The dividends are covered by cash flows, though this coverage has been inconsistent historically. Equinor trades at a significant discount to its estimated fair value, but faces strategic challenges aligning with global climate goals.



2. Rubis (ENXTPA:RUI)

Rubis, a French energy and gas distribution company, offers a dividend yield of 8.00%. The company's stable cash flows and high dividend payouts make it an attractive option for income-seeking investors. With a payout ratio of 45.5%, Rubis' dividends are well-covered by earnings, providing a sense of security for investors.

Key Metrics:
- Dividend Yield: 8.00%
- Payout Ratio: 45.5%
- Cash Flow Coverage: 86.4%

Rubis' dividend yield is one of the highest among the top European dividend stocks, making it a standout choice for investors looking for high income. The company's stable cash flows and strong financial performance contribute to its high dividend yield, making it a reliable option for income-seeking investors.

3. VERBUND (WBAG:VER)

VERBUND, an Austrian energy company, offers a dividend yield of 6.32%. The company benefits from the stable demand for electricity, allowing it to maintain high dividend yields. With a payout ratio of 51.2%, VERBUND's dividends are well-covered by earnings, providing a sense of security for investors.

Key Metrics:
- Dividend Yield: 6.32%
- Payout Ratio: 51.2%
- Cash Flow Coverage: 51.2%

VERBUND's dividend yield is supported by its strong financial performance and stable cash flows. The company's payout ratio indicates that its dividends are well-covered by earnings, providing a sense of security for investors. VERBUND's stable demand for electricity and strong financial performance make it a reliable option for income-seeking investors.

Conclusion

In a market characterized by economic uncertainties and mixed central bank policies, dividend stocks offer a measure of stability and income. Equinor, Rubis, and VERBUND stand out as top European dividend stocks with yields up to 9.8%, providing investors with a blend of income and potential growth. By considering key financial metrics and ratios, investors can make informed decisions about the sustainability and growth potential of these high-yield dividend stocks.

Ask Aime: Which European dividend stocks offer yields up to 9.8%?