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 August 2024, the top-performing dividend-payers included Dutch specialty chemicals company OCI Global (OCI), Dutch oil and gas equipment and services company SBM Offshore (SBMO), and Finnish oil and gas company Neste (NESTE).
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 capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.
The Best-Performing Eurozone Dividend Stocks of August 2024
1. OCI Global (OCI)
2. SBM Offshore (SBMO)
3. Neste (NESTE)
4. Metro (B4B)
5. Orion (ORNAV)
6. Rational Austria (RAA)
7. Hannover Re (HNR1)
8. IMCD (IMCD)
9. Talanx (TLX)
10. Corbion (CRBN)
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 2.6% over the past month and 11.9% over the past year.
The overall eurozone stock market, as measured by the Morningstar Eurozone Index, has gained 1.5% on the month and 15.9% on the year.
Yields and Metrics for August's Best-Performing Dividend Stocks
OCI Global
Dutch specialty chemicals company OCI Global rose 28.6% in August and gained 26.1% over the past 12 months. Trading at EUR 29.04 per share, its stock has a forward dividend yield of 5.85%. OCI Global pays investors a trailing 12-month dividend of EUR 0.82 per share. The stock has a quantitative Morningstar Rating of 3 stars.
SBM Offshore
Dutch oil and gas equipment and services company SBM Offshore rose 14.0% in August and gained 33.4% over the past 12 months. At EUR 16.88 per share, its stock has a forward dividend yield of 4.53% and a trailing 12-month dividend of EUR 0.74 per share. It has a quantitative Morningstar Rating of 3 stars.
Neste
Finnish oil and gas company Neste gained 13.3% in August and fell 33.4% over the past 12 months. The stock's EUR 20.79 price gives it a forward dividend yield of 5.77%. Neste pays investors a trailing 12-month dividend of EUR 1.11 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Metro
German food distributor Metro rose 13.3% in August and lost 27.6% over the past 12 months. Trading at EUR 4.80 per share, Metro stock has a forward dividend yield of 11.45% and a trailing 12-month dividend of EUR 0.55 per share. It has a quantitative Morningstar Rating of 3 stars.
Orion
Finnish drug manufacturer Orion gained 12.8% in August and rose 27.4% over the past 12 months. Trading at EUR 47.85 per share, its forward dividend yield is 3.39%. Orion pays investors a trailing 12-month dividend of EUR 0.81 per share. It has a quantitative Morningstar Rating of 3 stars.
Rational Austria
German specialty industrial machinery firm Rational Austria gained 12.6% in August and rose 31.5% over the past 12 months. At EUR 903 per share, Rational Austria stock has a forward dividend yield of 1.5% and a trailing 12-month dividend of EUR 13.50 per share. The stock, which has a narrow economic moat, is significantly overvalued, trading 43% above its fair value estimate of EUR 630 per share. It has a Morningstar Rating of 1 star.
Hannover Re
German reinsurance company Hannover Re rose 11.6% in August and gained 34.3% over the past 12 months. Trading at EUR 258 per share, Hannover Re stock has a forward dividend yield of 2.33% and a trailing 12-month dividend of EUR 6 per share. The stock, which has no economic moat, is trading near its fair value estimate of EUR 235 per share. It has a Morningstar Rating of 3 stars.
IMCD
Dutch specialty chemicals company IMCD rose 11.1% in August and gained 17.9% over the past 12 months. Trading at EUR 147.20 per share, IMCD stock has a forward dividend yield of 1.52% and pays investors a trailing 12-month dividend of EUR 2.24 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Talanx
German diversified insurance firm Talanx gained 10.8% in August and rose 29.3% over the past 12 months. The stock's EUR 78.60 price gives it a forward dividend yield of 2.99%. Talanx pays investors a trailing 12-month dividend of EUR 2.35 per share. With a fair value estimate of EUR 62.20 per share and no economic moat, the stock is moderately overvalued, trading at a 26% premium. It has a Morningstar Rating of 2 stars.
Corbion
Dutch specialty chemicals company Corbion rose 10.6% in August and gained 6.7% over the past 12 months. At EUR 22.96 per share, Corbion has a forward dividend yield of 2.66% and a trailing 12-month dividend of EUR 0.61 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 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.
• 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.
