Invest €5,000 in These Stocks to Earn at Least €1,000 in Dividends

Best Dividend Stocks in European Markets Today

To stimulate economic growth, the European Central Bank has cut interest rates for the third time since June, lowering the main refinancing rate to 3.40%.
This decision has pushed major European stock indices to period highs, complicating the selection of stocks to add to investment portfolios.

Given the current climate of high uncertainty in the financial markets, which has reached levels not seen since August with the Stoxx 50 Volatility Index (VSTOXX) rising compared to the earlier months of 2024, yield-seeking investors can look towards high-dividend stocks that provide stable income flows in the long term.

Below are three high-dividend European stocks expected to provide returns of at least €1,000 in dividends when investing €5,000 in each share.

1) Acomo NV – Dividend Yield: 6.64%

Acomo NV is a food distribution company based in the Netherlands, operating across Europe and North America.
With a market capitalization of €512.39 million, revenue sources mainly include spices and nuts (€445.76 million), organic ingredients (€429.28 million), and edible seeds (€246.52 million).

The quarterly dividend stands at €0.29 per share, but the remuneration to shareholders has shown volatility over the past decade.
Despite offering a 6.64% dividend yield, it has a 95.7% payout ratio, raising concerns about the sustainability of future dividends.

Nonetheless, the company’s growth potential presents an interesting opportunity for investors seeking income flows.
An investment of €5,000 in Acomo could yield approximately €332 annually.

2) Signify NV – Dividend Yield: 6.92%

Signify NV is a Dutch multinational specializing in LED lighting, established in 2016 after spinning off Philips’s lighting division.
With a market capitalization of around €2.83 billion, revenue from traditional lighting products stands at €519 million, reflecting a strong financial foundation.

With a dividend yield of 6.92%, it presents a fantastic opportunity for passive income seekers.
The company operates mainly in lighting products and systems, generating over €6 billion annually.

Recently, Signify has initiated innovative sustainability measures, boosting its appeal to both consumers and businesses.
Despite a 34.2% cash payout ratio ensuring dividend coverage through cash flows and an 80.4% earnings payout ratio, the company has exhibited financial volatility, with declining sales and increasing net profit.

Historically maintaining stable dividend policies, investing €5,000 in Signify could yield approximately €346 annually, contributing to a diversified and profitable portfolio.

3) ING Group – Dividend Yield: 6.92%

ING Group is a leading global banking institution, boasting a market capitalization of over €50 billion.
Its dividend yield is reported at 6.92%, placing it among the top dividend payers in the Netherlands.
With a current payout ratio of 69.8%, ING provides robust dividend coverage, expected to improve to 49.3% in the next three years.

Offering a variety of banking services throughout Europe, ING has shown remarkable resilience amid market volatility, supported by diversified operations and strong management.
Through a €2.49 billion share buyback plan, the bank is committed to returning value to shareholders.

An investment of €5,000 in ING shares could generate an annual dividend return of €346, solidifying its reputation as a reliable dividend stock.

DISCLAIMER

The information and insights contained in this article are not intended to serve as the sole or primary basis for making investment decisions.
Readers maintain full autonomy and responsibility regarding their investment choices, as they are best positioned to understand their own risk tolerance and investment horizon.
These insights are provided for informational purposes only and do not constitute an offer or solicitation for public savings.