3 European Dividend Stocks Yielding Up To 7.7%

Amidst rising energy costs and inflationary pressures, European markets have faced a challenging environment, with the STOXX Europe 600 Index recently declining by 0.85%. Despite these hurdles, robust corporate earnings growth highlights opportunities for investors seeking stability through dividend stocks. In such a climate, dividend-paying stocks can offer a reliable income stream and potential resilience against market volatility.

Top 10 Dividend Stocks In Europe

Click here to see the full list of 203 stocks from our Top European Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

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

Overview: SpareBank 1 Nord-Norge offers banking services in Northern Norway and has a market cap of NOK15.04 billion.

Operations: SpareBank 1 Nord-Norge generates revenue from providing banking services primarily in Northern Norway.

Dividend Yield: 5.7%

SpareBank 1 Nord-Norge offers a reliable dividend yield of 5.67%, though it falls short compared to the top Norwegian payers. The bank’s dividends are well-supported by earnings with a current payout ratio of 57.2% and are forecasted to remain sustainable at 67% in three years. Despite recent earnings decline, its stable and growing dividends over the past decade make it an attractive option for income-focused investors, although its high bad loans ratio of 2.6% is noteworthy.

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

Overview: Odfjell SE provides transportation and storage services for bulk liquid chemicals, acids, edible oils, and other specialty products in Norway, with a market cap of NOK9.17 billion.

Operations: Odfjell SE’s revenue is primarily derived from its Chemical Tankers segment, contributing $1.10 billion, and its Tank Terminals segment, contributing $1 million.

Dividend Yield: 7.8%

Odfjell’s dividend yield of 7.77% ranks in the top quartile among Norwegian stocks, supported by a payout ratio of 50.7% and a cash payout ratio of 32%. However, its dividends have been volatile over the past nine years. Recent Q1 earnings showed a slight decline in net income to US$32.1 million from US$34.4 million last year, while ongoing fleet investments indicate strategic growth despite high debt levels.

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

Overview: Flughafen Zürich AG owns and operates the Zurich Airport in Switzerland, with a market cap of CHF6.97 billion.

Operations: Flughafen Zürich AG generates revenue from several segments, including International (CHF124.80 million), Non-Regulated Business (CHF648.60 million), and various Regulated Business activities such as Aviation (CHF459.30 million), User Fees (CHF96.10 million), Access Fees (CHF5 million), Air Security (CHF196.30 million), and People with Reduced Mobility services (CHF16.30 million).

Dividend Yield: 3.7%

Flughafen Zürich’s dividend of CHF 8.50 per share places it among the top 25% of Swiss dividend payers, yet its history reveals volatility and unreliability over the past decade. Despite a reasonable payout ratio of 75.3%, dividends are not well covered by cash flows due to a high cash payout ratio of 198.4%. Recent earnings growth to CHF 346.5 million suggests profitability, but sustainability concerns remain given cash flow coverage issues.

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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 OB:NONG OB:ODF and SWX:FHZN.

This article was originally published by Simply Wall St.

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