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It’s also worth noting that while U. S. dividend payers make their money distributions quarterly, European dividend stocks have a habit of paying out only once or twice a year. And in some cases, those dividends are distributed unevenly between an interim mid-year payment and a final distribution at the end of the year.
So why do investors forget about royalties on European dividends when American aristocrats are required to have a much more impressive track record?
On the one hand, you have to give in. European dividend-paying stocks have long outperformed their US counterparts on average. According to the S indices
There is also the proposal.
“We wouldn’t be surprised if European stocks were up a little bit this year,” Jason Trennert, a lead investment strategist at Strategas, and Ross Mayfield, an investment strategy analyst at Baird Private Wealth Management, said earlier this year. “Part of that is because of the huge differences in valuation between their markets and ours, however [we would also see] that their indices have a tendency to be more price-oriented, and lately we have a bias in favor of price over growth. “
Let’s take a closer look at 10 European dividend aristocrats. The corporations featured here stand out among European dividend stocks for their high yields and modest valuations.
Shares with dividend yield in the S
Data is as of March 22, unless otherwise noted. The Aristocrats of the S Dividend
United Utilities Group (UUGRY, $25. 50) supplies water and sanitation to more than 3 million homes and businesses in the North West of England, which includes Greater Manchester, Merseyside, Cheshire and Cumbria, among other areas.
Utility stocks are pretty much the same all over the world: you can count on them for slow but steady expansion over time. Not to mention, these are stocks with reliable dividends. United Utilities has been paying out its shareholders since 1990, and its current streak of dividend expansion has lasted more than a decade. Your recent maximum payment accumulates 1% year-over-year on your interim and final bills in 2022.
Potential investors in European Dividend Aristocrats deserve to be aware that the company is going through a leadership transition. UUGRY announced last year that CEO Steve Mogford would step down in early 2023, and this year, United Utilities announced that his departure would take place in March. 31. Louise Beardmore, former Director of Customer Service and Human Resources, is UUGRY’s designated CEO.
Sika AG (SXYAY, $27. 93) is a Swiss multinational specialty chemicals company that develops systems and products for the structural and automotive industries. For example, their automotive products come with external adhesives, sealants for paint shops, and structural inserts for frame shops. And its structure products are used in the production of windows, doors, floors, facades and much more.
A possible expansion opportunity for Sika is the decarbonization of those two industries. For example, in 2021, the company announced that it had developed concrete additives calcined clay cement (LC3) technology, which reduces CO2 emissions. And its impact-resistant SikaPower adhesives help reduce not only the weight of automobiles, but also welding problems in automobile production, reducing energy consumption.
CFRA analyst Adrian Ng is more optimistic about the February call: “We are increasing our advice on Sika to Buy from Hold with an upper value target of CHF 315 (CHF 270)… due to the immediate improvement. of the group’s margins and to better – Higher-than-expected activity in the structural sector,” he wrote. With strong effects through 2021 and 2022, we are more positive on Sika given better-than-expected structural activity globally heading into 2023. ”
Sika is a member of the S
The Smurfit Kappa Group (SMFKY, $36. 48), based in Ireland, is one of the largest paper packaging companies in the world. Their product list ranges from basic cardboard boxes and beer bottle holders to confectionery pads and adhesive and sealant cartridges.
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The company had a record year in 2022 in which its revenue rose by 27% to €12. 8 billion and its earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 38% to €2. 35 billion. All this despite a slight decrease in box volumes. , which the organization attributed in some way to “the partial reversal of the unsustainable call for degrees observed during the pandemic period”.
This allowed Smurfit to approve a 12% year-on-year increase in the final 2022 dividend, up to 107. 6 euro cents depending on the percentage. (Note: The interim dividend of 31. 6 euro cents per percentage is 8% higher than the 2022 interim dividend. ) The increase marked 11 consecutive years of additional cash distributions to shareholders.
Danish transportation and logistics company DSV (DSDVY, $92. 11) transports goods from point A to point B in every way imaginable. The company’s responses come with all types of road transport, from local to international; rail transport; maritime transport; air transport; and courier services. He even provides customized responses for “oversized or complex loads,” boasting that he once transported a 35-meter transition piece for the Sheringham Shoal wind farm, off the east coast of England.
In addition, DSV addresses logistical responses such as warehousing and order processing.
2022 was a vital year for DSV, which completed the integration of Agility’s Global Integrated Logistics (GIL) business. This contributed to the expansion of gross profit (35%) and EBIT (47%) of its Solutions division. Overall, EBIT increased up to 48% year-on-year in 2022.
As a result, the board approved a strong dividend increase of 18% to DKK 6. 5, in line with the constant percentage – the company’s twelfth consecutive dividend increase, thus maintaining DSV’s adherence to the European dividend aristocrats.
Geberit Sanitary Technology Group (GBERY, $54. 98) is in charge of one of the least glamorous rooms in the house.
Geberit develops systems for wall-hung toilets, urinals and bidets, floor-standing toilets, siphons, bathtub faucets, dishes, remote flush buttons and much more. (And even urinals have made it into the 21st century: the Geberit Control app allows you to program, control and hold the company’s urinal trays type 10 and type 50!)
Unlike some of the other European dividend aristocrats on this list, Geberit hasn’t consistently given up on a slap in the face in 2022; earnings declined due to high commodity and energy prices, and EBITDA declined 15% year-over-year. Still, the company approved its twelfth consecutive dividend increase – a modest 1% increase to CHF 12. 6 per share.
Ashtead Group PLC (ASHTY, $251. 05) is a decidedly unglamorous company that rents out commercial structures and appliances in the United States, the United Kingdom and Canada under the Sunbelt Rentals brand.
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Even if you haven’t heard of her, she’s a major player. With 1,056 retail locations in 48 states, it is the second largest appliance rental company in North America. It also has 113 other retail locations in Canada, giving it an 8% market share. And its British department of 184 points of sale is the most productive in this country.
Ashtead’s fortunes have advanced in recent times, prompting CFRA to modernise. “In the first nine months of FY23, AHT added 120 locations in North America. Management has raised its FY23 guidance to rental earnings expansion of 21-23% (from 18% to 21 %) and its investment forecast at $3. 5-3. 7 billion (from $3. 3 billion to $3. 3 billion. -$3. 6 billion) but keeps loose cash at around $300 million,” said analyst Alan Lim Seong Chung. “AHT is now a buy as we are expecting strong earnings expansion of >20% in FY23 to more than offset the marginal decline in EBITDA margin.
ASHTY provided a giant dividend last year, with its annual dividend of 57. 28 pence, up 64% from last year. It also marked 15 consecutive years of uninterrupted expansion in dividend distributions for the European aristocrat.
If Fresenius Medical Care (FMS, $20. 06) is a member of S
Fresenius Medical Care, founded in Germany, is the world’s leading provider of products for other people with kidney disease (read: kidney disease). The company serves approximately 345,000 patients in more than 4,100 dialysis clinics in approximately 150 countries.
Truist analyst David MacDonald recently spoke about the stock’s advance:
“FMS has a number of strategic projects in position to help optimize the business, margins and increase profitability,” he explains. It maintains a Hold rating on the stock, but notes that “while the environment remains challenging and execution is critical, “We have raised our target to $22 (from $17 previously) to reflect some headwinds and announced projects, which they deserve to help performance. “
In 2022, the company’s 25th consecutive dividend was agreed: an admittedly symbolic increase of less than 1%, to €1. 35 per share. Still, FMS generates a lot of revenue, delivering a sizable return of more than 3%, about twice that presented through the S
To Americans, Novo Nordisk (NVO, $147. 29) is one of the best-known European dividend aristocrats. It offers many medications for diabetes (including more than a dozen other insulins), as well as treatments for hemophilia, growth disorders, and obesity. Novo Nordisk also gives several hormonal remedies.
One of Novo’s biggest backers is Wegovy, an obesity treatment that competes with Eli Lilly’s (LLY) Mounjaro. “While Mounjaro continues to grow slowly, Novo’s Wegovy has seen immediate adoption over the past two weeks, with 15. 1% this week and 7. 2% this week. % last week,” the analyst at BMO Capital Markets, Evan David Seigerman. Last year, Novo doubled its anti-obesity drug sales target by 2025, thanks in part to Wegovy’s strong optimism.
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Healthcare stocks like Novo are very similar to customer utilities and commodities in that their products are in demand, regardless of the economic environment. This is helping them pay strong, growing dividends, and Novo is no exception. So far, the company has earned 26 consecutive annual increases in its dividend. And during its fourth-quarter 2022 earnings call, the company said that at its annual general meeting on March 23, it would propose a final dividend of SEK 8. 15 for a global dividend for 2022 of SEK 12. 44, a 19% increase year-over-year. This would mark the 27th year of higher payments for NVO.
If Fresenius SE (FSNUY, $6. 52) sounds a little familiar. . . Well, it does. It has the same name as its division discussed in the past: Fresenius Medical Care.
Fresenius owns approximately a 32% stake in FMC. And currently, FMC is one of Fresenius’ subsidiaries; However, the company plans to replace it within a few months, by deconsolidating FMC into a German joint stock company.
However, many companies will remain. Fresenius’ other divisions include Fresenius Helios, Germany’s largest hospital operator; Fresenius Kabi, which supplies medicines, medical devices and clinical nutrition products; and Fresenius Vamed, director of a gym.
Like many other European dividend stocks, Fresenius SE tries to tie its dividend to its earnings, generally maintaining a payout rate of between 20% and 25%. Last year, the company approved a 5% dividend increase, to 92 cents per share, a year after three consecutive decades of dividend increases. It also began offering a stock dividend, which allows investors to earn dividends in the form of new shares.
Another European dividend aristocrat whose logo is well-known in the United States is German software multinational SAP (SAP, $123. 48).
SAP supports deck financial management, business technology, visitor appointment management, enterprise resource planning, supply chain management, and more. And SAP is everywhere: The company says its customers come from 99 of the world’s 100 largest companies and generate 87% of the global industry overall ($46 trillion).
Tech inventory has a decent bullish field among the group of analysts, Argus Research’s Joseph Bonner (Hold) is issuing a warning.
“As SAP overcomes the fallout from the Russia-Ukraine war on its parent, the company continues to face a precarious macroeconomic environment that generates hesitant customers,” he said. “SAP has set ambitious goals for the coming years, although the environment remains uncertain. “
Regardless, SAP is one of the most productive dividend expansion stocks and its payouts are expected to continue to grow. Its corresponding advisory and control forums foresee a dividend increase of 5% to 2. 05 euros per share. Shareholders will give their opinion at the annual meeting on May 11.
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Kyle Woodley is the editor-in-chief of WealthUp, a site committed to personal finance and financial education for people of all ages. He also writes the weekly newsletter The Weekend Tea, covering news and research on spending, saving, investing, the economy and more.
Kyle was formerly the investment editor of Kiplinger. com and previously editor-in-chief of InvestorPlace. com. His work has been published in various media outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe.
You can voice your opinion on the markets (and more) at @KyleWoodley.