3 European Dividend Stocks To Consider With Up To 6.1% Yield

Amid recent developments in Europe, where the pan-European STOXX Europe 600 Index saw a notable rise of 1.77% following relief from the U.S. government reopening, investor sentiment has been tempered by cooling enthusiasm around artificial intelligence investments. In this context, dividend stocks can offer a stable income stream and potential for long-term growth, making them an attractive option for investors looking to navigate uncertain market conditions while benefiting from consistent returns.

Click here to see the full list of 223 stocks from our Top European Dividend Stocks screener.

Let’s take a closer look at a couple of our picks from the screened companies.

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

Overview: Bouvet ASA offers IT and digital communication consultancy services to both public and private sectors in Norway, Sweden, and internationally, with a market cap of NOK6.15 billion.

Operations: Bouvet ASA’s revenue is primarily derived from IT Consulting Services, amounting to NOK3.94 billion.

Dividend Yield: 6.2%

Bouvet ASA’s dividend yield of 6.17% is below the top quartile of Norwegian dividend payers, yet it offers a reliable and stable payout history over the past decade. The company’s recent earnings report showed slight growth, with net income for nine months at NOK 286.82 million. Bouvet has announced a special cash dividend of NOK 0.70 per share, reflecting its commitment to shareholder returns. Dividends are well-covered by both earnings and cash flow, suggesting sustainability at current payout ratios.

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

Overview: Cloetta AB (publ) is a confectionery company with a market cap of approximately SEK10.36 billion.

Operations: Cloetta AB generates revenue primarily from two segments: Pick & mix, which accounts for SEK2.56 billion, and Packaged branded goods, contributing SEK6.02 billion.

Dividend Yield: 3%

Cloetta’s dividend payments are supported by a low payout ratio of 43.8% and a cash payout ratio of 39.7%, indicating sustainability from earnings and cash flows. Despite recent earnings growth, dividends have been volatile over the past decade, affecting reliability. The dividend yield stands at 3.04%, below Sweden’s top quartile payers, while shares trade at a discount to estimated fair value. A new EUR 240 million financing agreement enhances financial flexibility amidst strategic shifts.

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

Overview: M1 Kliniken AG, with a market cap of €304.67 million, operates in the field of aesthetic medicine and plastic surgery services across Germany, Austria, the Netherlands, Switzerland, the United Kingdom, Croatia, Hungary, Bulgaria, Romania and Australia.

Operations: M1 Kliniken AG generates its revenue through two primary segments: Trade, which accounts for €260.54 million, and Beauty, contributing €94.35 million.

Dividend Yield: 3%

M1 Kliniken’s dividend sustainability is supported by a payout ratio of 52.6% and a cash payout ratio of 26.7%, indicating coverage from both earnings and cash flows. Despite recent earnings growth, the dividend yield of 3.05% is below Germany’s top quartile payers, and payments have been volatile over the past decade. Recent half-year results show increased sales to €183.54 million with net income rising to €11.62 million, suggesting potential for future stability in dividends amidst strategic developments.

• Dive into all 223 of the Top European Dividend Stocks we have identified here.

• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.

• Streamline your investment strategy with Simply Wall St’s app for free and benefit from extensive research on stocks across all corners of the world.

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:BOUV OM:CLA B and XTRA:M12.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com