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 May 2024, the top-performing dividend-payers included French specialty business services firm Teleperformance (TEP), Belgian midstream oil and gas company Euronav (EURN), and French building materials firm Imerys (NK).
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 May 2024
1. Teleperformance (TEP)
2. Euronav (EURN)
3. Imerys (NK)
4. Befesa Medio Ambiente (BFSA)
5. Manitou Group (MTU)
6. Bilfinger (GBF)
7. Van Lanschot Kempen (VLK)
8. Renault (RNO)
9. Ayvens (AYV)
10. Fomento de Construcciones y Contratas (FCC)
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, rose 2.7% over the past month and 8.4% over the past year.
The overall eurozone stock market, as measured by the Morningstar Eurozone Index, has gained 3.2% on the month and 19.7% on the year.
Yields and Metrics for May's Best-Performing Dividend Stocks
Teleperformance
French specialty business services firm Teleperformance rose 26.6% in May and lost 22.6% over the past 12 months. Trading at €106.75 per share, its stock has a forward dividend yield of 3.61%. Teleperformance pays investors an annual dividend of €3.85 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Euronav
Belgian midstream oil and gas company Euronav rose 24.4% in May and gained 50.9% over the past 12 months. At €15.66 per share, its stock has a forward dividend yield of 39.13% and an annual dividend of €2.07 per share. It has a quantitative Morningstar Rating of 3 stars.
Imerys
French building materials firm Imerys gained 22.6% in May and rose 11.6% over the past 12 months. The stock's €36.90 price gives it a forward dividend yield of 3.66%. Imerys pays investors an annual dividend of €1.50 per share. The stock has a quantitative Morningstar Rating of 4 stars.
Befesa Medio Ambiente
German waste management company Befesa Medio Ambiente rose 20.5% in May and lost 4.8% over the past 12 months. Trading at €32.74 per share, Befesa Medio Ambiente stock has a forward dividend yield of 2.23% and an annual dividend of €0.73 per share. It has a quantitative Morningstar Rating of 3 stars.
Manitou Group
French heavy machinery company Manitou Group gained 20.2% in May and rose 29.7% over the past 12 months. Trading at €28.10 per share, its forward dividend yield is 4.8%. Manitou Group pays investors €0.63 per share annually. It has a quantitative Morningstar Rating of 4 stars.
Bilfinger
German engineering and construction company Bilfinger gained 19.0% in May and rose 57.2% over the past 12 months. At €50 per share, Bilfinger stock has a forward dividend yield of 3.6% and an annual dividend of €1.30 per share. It has a quantitative Morningstar Rating of 3 stars.
Van Lanschot Kempen
Dutch regional bank Van Lanschot Kempen rose 18.7% in May and gained 62.5% over the past 12 months. Trading at €37.65 per share, Van Lanschot Kempen stock has a forward dividend yield of 10.62% and an annual dividend of €3.75 per share. It has a quantitative Morningstar Rating of 4 stars.
Renault
French auto manufacturer Renault rose 18.6% in May and gained 77.2% over the past 12 months. Trading at €53.72 per share, Renault stock has a forward dividend yield of 3.44% and pays investors an annual dividend of €0.25 per share. The stock, which has no economic moat, is currently trading at a 17% discount to its fair value estimate of €65 per share, leaving it moderately undervalued, leaving it with a Morningstar Rating of 4 stars.
Ayvens
French rental and leasing company Ayvens gained 18.2% in May and fell 27.2% over the past 12 months. The stock's €6.86 price gives it a forward dividend yield of 6.86%. Ayvens pays investors an annual dividend of €1.06 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Fomento de Construcciones y Contratas
Spanish waste management company Fomento de Construcciones y Contratas rose 17.8% in May and gained 72.0% over the past 12 months. At €14.84 per share, Fomento de Construcciones y Contratas has a forward dividend yield of 3.37% and an annual dividend of €0.50 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.
