With strong balance sheets and high yields, dividend stocks can provide investors with a steady income, act as a buffer against market downturns, and grow their investments at a healthy pace.
The companies that paid the most dividends in the second quarter of 2024 included French metals and mining company Eramet (ERA), Belgian chemical company Solvay (SOLB), and French oil and gas company Esso (ES).
To find the top 10 best-performing income-focused stocks for the quarter, we screened the Morningstar Eurozone Index (which measures the performance of the broad eurozone regional market and includes the top 97% of stocks by market capitalization) for companies with dividend yields of 1.5% or more, excluding real estate investment trusts.
Eurozone dividend stocks best performers in Q2 2024
1. Eramet (ERA)
2. Solvay (SOLB)
3. Esso (ES)
4. Gulp Energia (GALP)
5. KEMIRA
6. Wartsila (WRT1V)
7. MFE-MediaForEurope Class B (MFEB)
8. Sabadell Bank (SAB)
9. Van Ranshot Kempen (VLK)
10. Unipol Group (UNI)
How are dividend stocks performing?
The Morningstar Eurozone Dividend Yield Focus Index, which tracks the performance of blue-chip European-listed dividend stocks, was roughly flat over the past month but is up 4.6% over the past year.
The broader euro zone stock market, as measured by the Morningstar Eurozone Index, fell 1.3% for the quarter but rose 12.2% for the year.
Yields and indices for stocks with the highest dividend payout ratios in Q2
Eramet
French metals and mining company Eramet rose 35.8% in the second quarter and 14.3% over the past 12 months. Trading at €94.15 per share, the company's shares have a dividend yield of 1.59%. Eramet has paid investors a dividend of €3.50 per share over the past 12 months. The company's shares have a Quantitative Morningstar Rating of 3 Stars.
Solvay
Belgian chemical company Solvay rose 33.1% in the second quarter and 24.2% over the past 12 months. The stock is priced at €32.87 per share, has a dividend yield of 4.93%, and paid dividends of €4.13 per share over the past 12 months. It has a Quantitative Morningstar Rating of 3 stars.
Esso
French oil and gas company Esso rose 31.2% in the second quarter and is up 233.6% over the past 12 months. The stock is priced at €164.40 and has a dividend yield of 1.82%. Esso has paid investors a trailing 12-month dividend of €2 per share. The stock has a Morningstar Quantitative Rating of 4 Stars.
Gulp Energia
Portuguese oil and gas company Galp Energia rose 30.5% in the second quarter and 89.0% over the past 12 months. Trading at €19.72 per share, Galp Energia shares have a forward dividend yield of 2.74% and have paid dividends of €0.53 per share over the past 12 months. It has a Quantitative Morningstar Rating of 3 stars.
Kemira
Finnish chemical company Kemira rose 29.9% in the second quarter and is up 60.5% over the past 12 months. The stock is priced at €22.76 per share, with a dividend yield of 2.99%. Kemira has paid investors dividends of €0.65 per share over the past 12 months. It has a Quantitative Morningstar Rating of 3 Stars.
Wartsila
Wärtsilä, a Finnish maker of specialized industrial machinery, rose 27.8% in the second quarter and 77.3% over the past 12 months. At €18 per share, Wärtsilä shares have a dividend yield of 1.78% and have paid dividends of €0.29 per share over the past 12 months. The economically superior stock is moderately overvalued, trading at 39% above its fair value estimate of €13 per share. It has a Morningstar Rating of 2 stars.
MFE-MediaForEurope Class B
Italian broadcaster MediaForEurope rose 25.9% in the second quarter and has gained 22.4% over the past 12 months. Trading at €4.05 per share, MFE shares have a dividend yield of 6.17% and have paid out €0.25 per share over the past 12 months. It has a Quantitative Morningstar Rating of 4 stars.
Bank of Sabadell
Spanish bank Banco de Sabadell rose 25.8% in the second quarter and has gained 76.5% over the past 12 months. Trading at €1.80 per share, Banco de Sabadell shares have a forward dividend yield of 3.33% and have paid dividends of €0.03 per share over the past 12 months. The stock has a Quantitative Morningstar Rating of 3 Stars.
Van Ranschot Kempen
Dutch bank Van Lanschot Kempen rose 25.4% in the second quarter and 35.2% over the past 12 months. The stock is priced at €37.50 and has a dividend yield of 10.67%. Van Lanschot Kempen has paid investors €3.75 per share in dividends over the past 12 months. The stock has a Quantitative Morningstar Rating of 3 Stars.
Unipol Gruppo
Italian insurer Unipol rose 24.4% in the second quarter and has returned 97.5% over the past 12 months. At €9.28 per share, Unipol's dividend yield is 4.09% and it has paid out €0.37 per share in the past 12 months. It has a Quantitative Morningstar Rating of 4 stars.
What is the Morningstar Eurozone Index?
The Morningstar Eurozone Index measures the performance of the broad eurozone regional market and includes the top 97% of stocks by market capitalization. The index does not incorporate environmental, social, or governance criteria.
What is the Morningstar Eurozone Dividend Yield Focus Index?
The Morningstar Eurozone Dividend Yield Focus Index reflects the performance of a portfolio of high-quality dividend-paying securities.
This is a subset of the Morningstar Eurozone Index (which represents 97% of market capitalization) and includes only dividend-paying stocks. These stocks are selected based on their economic superiority and financial strength relative to other stocks in their sector. Real estate investment trusts are excluded.
From there, the 25 stocks with the highest dividend yields, weighted according to the dollar value of their dividends, are included in the index. See the full rulebook here.
Best Dividend Stock Leaders: More Ideas to Consider
Investors who want to research further and find even better performing stocks or stocks with low dividends can:
• See the full list of dividend stocks in the Morningstar Eurozone Dividend Yield Focus Index Dividend stocks with a Morningstar rating of four or five stars are undervalued according to our metrics.
• See our monthly analysis of the latest dividend trends of the FTSE 100's top dividend payers.
• Use the Morningstar Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on dividend yield, price-to-earnings ratio, and other valuation metrics.
• Use Morningstar Portfolio Manager to create a watchlist of the best dividend stocks, then create an easy-to-track view of the valuations, ratings and dividend yields of the stocks on your list.
• When buying a stock, it's not just the dividend that matters: Read here how important valuation and competitive advantages (known as economic moats) are when it comes to a stock's outperformance potential.
• Watch this video to learn how Morningstar uses Star Ratings, Moat Ratings, and other metrics to rate stocks.
Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
This article was generated with the help of automation and reviewed by a Morningstar editor..
