European Dividend Stocks

Since the dividend policy in Europe is not such an important compared, there do not exist so many interesting dividend stocks from Europe. A few of them I already have in portfolio like Daimler, BASF, Austrian Postal Service, Uniqa Insurance and some british once of course. But reading through other dividend income bloggers, I spotted some interesting picks, most of them with a high yield. I guess some are not that well known and I haven’t had a deeper look at them either.

This will be a series of articles from now on. Today I will introduce you to 3 companies which might be worth to look at, and in one of them I already decided to do an investment in the next days…

Nordea Bank Abp

Nordea is a universal Nordic bank which generates most of its income (63%) through vanilla lending products such as mortgages, household loans and corporate loans. The bank is also a leading equity and debt underwriter and issuer specialized in the Nordics, generating roughly a tenth of the group’s income. Nordea also offers life and pension, savings and asset management, as well as private banking services to high net-worth individuals. It operates primarily in Sweden, Denmark, Finland, and Norway.

Current Share Price: 6.54 EUR

Dividend per Share: 0.68 EUR

Dividend Yield: 10.40%

Sampo Oyj

Sampo Oyj is an insurance company that generates revenue through property and casualty insurance, life insurance, and banking services. The vast majority of the company’s revenue is generated through property and casualty insurance, followed by its banking arm Nordea. Sampo’s life insurance business also offers wealth management services. The company operates primarily in the Nordic and Baltic regions. Sampo does not maintain a stated companywide strategy, and instead maintains well-defined strategies within each individual business area, based on return on equity targets

Current Share Price: 40.59 EUR

Dividend per Share: 2.85 EUR

Dividend Yield: 7.02%

BT Group plc

BT Group is the incumbent fixed-line phone company in the U.K., providing phone, Internet access, and television services to residential and business customers. The firm also acquired wireless carrier EE in 2016. It also runs a global services business that is still one of the largest international providers of managed networks and information technology services. The firm is now organized into four segments: consumer services (46% of reported revenue), enterprise services (27%), global services (20%), and Openreach (9%, net of sales to other BT units). Openreach holds much of BT’s network infrastructure and sells access to BT’s retail units and other carriers.

Current Share Price: 2.063 GBP

Dividend per Share: 0.154 GBP

Dividend Yield: 7.46%

Conclusion

Investing in foreign companies, is always a good method for further diversification, but at the same you should also have a look at currency risk and unfortunately at withholding taxes, which can be a big pain in the end. Coming back to the threes companies mentioned above, despite of the high yield all three stocks have very stable dividend history in the last 10 years, and given that I already decided to make an investment in the BT Group. The other 2 stocks are now also on my watch list, and interesting picks for the next couple of months. Their 2018 dividends are already paid out so enough time to do some further research on them.

What do you think about those stocks? Do have any other european stocks on your watch list?

Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding!

1 Comment

  1. Interesting list! Already have Nordea and Sampo in my portfolio, but I am always looking for new European dividend stocks. The withholding taxes really limit our options, because the application for refund is always extra work and it can take months to get your money back.

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