Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.
In April 2024, the top-performing dividend-payers included Portuguese oil and gas firm Galp Energia (GALP), French metals and mining firm Eramet (ERA), and Spanish bank Banco de Sabadell (SAB).
To find the month's 10 best-performing income-focused stocks, we screened the Morningstar Eurozone Index – which measures the performance of the eurozone's broad regional markets, targeting the top 97% of stocks by market capitalisation – for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.
The Best-Performing Eurozone Dividend Stocks of April 2024
1. Galp Energia (GALP)
2. Eramet (ERA)
3. Banco de Sabadell (SAB)
4. Wärtsilä (WRT1V)
5. Solvay (SOLB)
6. Naturgy Energy Group (NTGY)
7. EVN (EVN)
8. MFE - MediaForEurope (MFEB)
9. Kemira (KEMIRA)
10. Terveystalo Healthcare (TTALO)
How Have Dividend Stocks Performed?
The Morningstar Eurozone Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying stocks listed in Europe, fell 1.3% over the past month, but has risen 3.3% over the past year.
The overall eurozone stock market, as measured by the Morningstar Eurozone Index, has lost 1.7% on the month, but has risen 13.6% on the year.
Yields and Metrics for April's Best-Performing Dividend Stocks
Galp Energia
Portuguese oil and gas firm Galp Energia rose 31.9% in April and gained 88.6% over the past 12 months. Trading at €20.20 per share, its stock has a forward dividend yield of 2.62%. Galp Energia pays investors an annual dividend of €0.53 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Eramet
French metals and mining firm Eramet rose 29.7% in April and gained 7.7% over the past 12 months. At €91.35 per share, its stock has a forward dividend yield of 1.64% and an annual dividend of €3.50 per share. It has a quantitative Morningstar Rating of 3 stars.
Banco de Sabadell
Spanish bank Banco de Sabadell gained 25.5% in April and rose 96.4% over the past 12 months. The stock's €1.80 price gives it a forward dividend yield of 3.34%. Banco de Sabadell pays investors an annual dividend of €0.03 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Wärtsilä
Finnish specialty industrial machinery firm Wärtsilä rose 23.2% in April and gained 68.1% over the past 12 months. Trading at €17.36 per share, Wärtsilä stock has a forward dividend yield of 1.84% and an annual dividend of €0.29 per share. The stock, which has a wide economic moat, is moderately overvalued, trading 34% above its fair value estimate of €13 per share. It has a Morningstar Rating of 2 stars.
Solvay
Belgian chemical company Solvay gained 20.2% in April and rose 16% over the past 12 months. Trading at €30.41 per share, its forward dividend yield is 5.33%. Solvay pays investors €4.05 per share annually. It has a quantitative Morningstar Rating of 3 stars.
Naturgy Energy Group
Spanish gas company Naturgy Energy Group gained 20% in April and fell 11.2% over the past 12 months. At €23.72 per share, Naturgy Energy Group stock has a forward dividend yield of 5.9% and an annual dividend of €1.50 per share. The stock, which has no economic moat, is trading near its fair value estimate of €25.70 per share. It has a Morningstar Rating of 3 stars.
EVN
Austrian utilities company EVN rose 17.8% in April and gained 37.3% over the past 12 months. Trading at €28.85 per share, EVN stock has a forward dividend yield of 1.8% and an annual dividend of €0.52 per share. It has a quantitative Morningstar Rating of 4 stars.
MFE - MediaForEurope
Italian broadcasting company MFE - MediaForEurope rose 17.3% in April and gained 20.4% over the past 12 months. Trading at €3.77 per share, MFE stock has a forward dividend yield of 6.63% and pays investors an annual dividend of €0.25 per share. The stock has a quantitative Morningstar Rating of 4 stars.
Kemira
Finnish chemical company Kemira gained 16.6% in April and rose 32.6% over the past 12 months. The stock's €20.42 price gives it a forward dividend yield of 3.33%. Kemira pays investors an annual dividend of €0.65 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Terveystalo Healthcare
Finnish medical care facilities firm Terveystalo Healthcare rose 15.5% in April and gained 13.5% over the past 12 months. At €8.71 per share, Terveystalo Healthcare has a forward dividend yield of 3.44% and an annual dividend of €0.29 per share. It has a quantitative Morningstar Rating of 4 stars.
What Is the Morningstar Eurozone Index?
The Morningstar Eurozone index measures the performance of the eurozone's broad regional markets, targeting the top 97% of stocks by market capitalisation. 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 captures the performance of a portfolio of high-quality, dividend-paying securities.
The Morningstar Eurozone Dividend Yield Focus index captures the performance of a portfolio of high-quality, dividend-paying securities. It's a subset of the Morningstar Eurozone index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.
From there, the 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.
The Best Dividend Stock Leaders: More Ideas to Consider
Investors who would like to uncover more top-performing or cheap dividend stocks to research further can do the following:
• Review the full list of Dividend stocks included in the Morningstar Eurozone Dividend Yield Focus index. Those dividend stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
• Read our monthly analysis of the latest dividend moves among the top FTSE 100 dividend payers.
• Use our Morningstar Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures such as price/earnings, and more.
• Use Morningstar Portfolio Manager to build a watchlist of the best dividend stocks and create a view that allows you to easily follow the valuations, ratings, and dividend yields of the stocks in your list.
Companies that are not formally covered by a Morningstar analyst have quantitative ratings. These companies are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
As part of our mission to put more information into the hands of investors, this article was compiled from Morningstar’s data and independent research using automation technology. The original article was written by Morningstar reporters and editors. This updated version was reviewed by an editor.