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 the third quarter of 2024, the top-performing dividend-payers included Dutch specialty chemicals company Corbion CRBN, French electrical equipment and parts company Nexans NEX, and Finnish heavy machinery company Konecranes KCR.
To find the quarter'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 Q3 2024
1. Corbion CRBN
2. Nexans NEX
3. Konecranes KCR
4. Webuild WBD
5. Orion ORNAV
6. Vonovia VNA
7. LEG Immobilien SE LEG
8. Vaisala VAIAS
9. Fluidra FDR
10. Titan Cement International TITC
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 8.2% over the past quarter and 19.1% over the past year.
The overall eurozone stock market, as measured by the Morningstar Eurozone Index, has gained 3.3% on the quarter and 21.0% on the year.
Yields and Metrics for Q3's Best-Performing Dividend Stocks
Corbion
Dutch specialty chemicals company Corbion rose 36.8% in the third quarter and gained 39.6% over the past 12 months. Trading at EUR 25.50 per share, its stock has a forward dividend yield of 2.39%. Corbion pays investors a trailing 12-month dividend of EUR 0.61 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Nexans
French electrical equipment and parts company Nexans rose 27.9% in the third quarter and gained 73.8% over the past 12 months. At EUR 131.30 per share, its stock has a forward dividend yield of 1.75% and a trailing 12-month dividend of EUR 2.30 per share. It has a quantitative Morningstar Rating of 3 stars.
Konecranes
Finnish heavy machinery company Konecranes gained 27.3% in the third quarter and rose 118.5% over the past 12 months. The stock's EUR 67.60 price gives it a forward dividend yield of 2.01%. Konecranes pays investors a trailing 12-month dividend of EUR 1.35 per share. The stock has a quantitative Morningstar Rating of 2 stars.
Webuild
Italian engineering and construction company Webuild rose 23.9% in the third quarter and gained 54.8% over the past 12 months. Trading at EUR 2.49 per share, Webuild stock has a forward dividend yield of 2.85% and a trailing 12-month dividend of EUR 0.07 per share. It has a quantitative Morningstar Rating of 3 stars.
Orion
Finnish drug manufacturer Orion gained 23.6% in the third quarter and rose 34.2% over the past 12 months. Trading at EUR 47.50 per share, its forward dividend yield is 3.34%. Orion pays investors a trailing 12-month dividend of EUR 0.81 per share. It has a quantitative Morningstar Rating of 3 stars.
Vonovia
German real estate company Vonovia gained 23.3% in the third quarter and rose 47.4% over the past 12 months. At EUR 33.56 per share, Vonovia stock has a forward dividend yield of 2.68% and a trailing 12-month dividend of EUR 0.90 per share. It has a quantitative Morningstar Rating of 3 stars.
LEG Immobilien SE
German real estate company LEG Immobilien SE rose 23.0% in the third quarter and gained 47.3% over the past 12 months. Trading at EUR 96.10 per share, LEG Immobilien SE stock has a forward dividend yield of 2.55% and a trailing 12-month dividend of EUR 2.45 per share. It has a quantitative Morningstar Rating of 4 stars.
Vaisala
Finnish technical instruments company Vaisala rose 22.4% in the third quarter and gained 50.5% over the past 12 months. Trading at EUR 49.25 per share, Vaisala stock has a forward dividend yield of 1.54% and pays investors a trailing 12-month dividend of EUR 0.75 per share. The stock has a quantitative Morningstar Rating of 2 stars.
Fluidra
Spanish specialty industrial machinery firm Fluidra gained 22.1% in the third quarter and rose 24.7% over the past 12 months. The stock's EUR 23.04 price gives it a forward dividend yield of 2.16%. Fluidra pays investors a trailing 12-month dividend of EUR 0.65 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Titan Cement International
Belgian building materials firm Titan Cement International rose 21.6% in the third quarter and gained 110.5% over the past 12 months. At EUR 35 per share, Titan Cement International has a forward dividend yield of 2.43% and a trailing 12-month dividend of EUR 0.85 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 capitalization. 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.
