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 July 2024, the top-performing dividend-payers included German credit services firm Grenke Factoring Business (GLJ), French household and personal products company InterParfums (ITP), and Finnish heavy machinery company Konecranes (KCR).
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 July 2024
1. Grenke Factoring Business (GLJ)
2. InterParfums (ITP)
3. Konecranes (KCR)
4. Terveystalo Healthcare (TTALO)
5. Cosmote Mobile Telecommunications (HTO)
6. Webuild (WBD)
7. BFF Bank (BFF)
8. Aixtron Group (AIXA)
9. Nexans (NEX)
10. Barco (BAR)
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 2.5% over the past month and 6.4% over the past year.
The overall eurozone stock market, as measured by the Morningstar Eurozone Index, was roughly flat on the month, but has risen 10.6% on the year.
Yields and Metrics for July's Best-Performing Dividend Stocks
Grenke Factoring Business
German credit services firm Grenke Factoring Business rose 38.3% in July and gained 15.8% over the past 12 months. Trading at EUR 28.55 per share, its stock has a forward dividend yield of 1.65%. Grenke Factoring Business pays investors a trailing 12-month dividend of EUR 0.45 per share. The stock has a quantitative Morningstar Rating of 4 stars.
InterParfums
French household and personal products company InterParfums rose 23.2% in July and lost 19.4% over the past 12 months. At EUR 47.05 per share, its stock has a forward dividend yield of 2.22% and a trailing 12-month dividend of EUR 0.87 per share. It has a quantitative Morningstar Rating of 3 stars.
Konecranes
Finnish heavy machinery company Konecranes gained 21.9% in July and rose 99.5% over the past 12 months. The stock's EUR 64.55 price gives it a forward dividend yield of 2.09%. Konecranes pays investors a trailing 12-month dividend of EUR 1.35 per share. The stock has a quantitative Morningstar Rating of 2 stars.
Terveystalo Healthcare
Finnish medical care facilities firm Terveystalo Healthcare rose 19.8% in July and gained 43.5% over the past 12 months. Trading at EUR 10.30 per share, Terveystalo Healthcare stock has a forward dividend yield of 2.91% and a trailing 12-month dividend of EUR 0.29 per share. It has a quantitative Morningstar Rating of 3 stars.
Cosmote Mobile Telecommunications
Greek telecom services firm Cosmote Mobile Telecommunications gained 18.2% in July and rose 10.7% over the past 12 months. Trading at EUR 15.17 per share, its forward dividend yield is 4.76%. Cosmote Mobile Telecommunications pays investors a trailing 12-month dividend of EUR 0.59 per share. It has a quantitative Morningstar Rating of 3 stars.
Webuild
Italian engineering and construction company Webuild gained 18.2% in July and rose 39.9% over the past 12 months. At EUR 2.42 per share, Webuild stock has a forward dividend yield of 2.93% and a trailing 12-month dividend of EUR 0.06 per share. It has a quantitative Morningstar Rating of 3 stars.
BFF Bank
Italian credit services firm BFF Bank rose 17.8% in July and gained 11.4% over the past 12 months. Trading at EUR 10.45 per share, BFF Bank stock has a forward dividend yield of 9.37% and a trailing 12-month dividend of EUR 0.86 per share. It has a quantitative Morningstar Rating of 3 stars.
Aixtron Group
German semiconductor equipment and materials firm Aixtron Group rose 17.8% in July and lost 39.0% over the past 12 months. Trading at EUR 21.60 per share, Aixtron Group stock has a forward dividend yield of 1.85% and pays investors a trailing 12-month dividend of EUR 0.40 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Nexans
French electrical equipment and parts company Nexans gained 16.2% in July and rose 51.1% over the past 12 months. The stock's EUR 119.60 price gives it a forward dividend yield of 1.92%. Nexans pays investors a trailing 12-month dividend of EUR 2.30 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Barco
Belgian electronic components company Barco rose 15.1% in July and lost 41.5% over the past 12 months. At EUR 11.92 per share, Barco has a forward dividend yield of 4.03% and a trailing 12-month dividend of EUR 0.48 per share. It has a quantitative Morningstar Rating of 3 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.
It's a subset of the Morningstar Eurozone index (which represents 97% of the equity market capitalisation) 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.
• When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages – known as economic moats – matter when it comes to a stock’s potential for outperformance.
• Watch this video to learn how Morningstar uses the star rating, moat rating and other metrics to evaluate 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 Morningstar editors.
