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 October 2024, the top-performing dividend-payers included French regional bank Societe Generale GLE, German software infrastructure firm Secunet Security Networks YSN, and German heavy machinery company Daimler Truck DTG.
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 October 2024
1. Societe Generale GLE
2. Secunet Security Networks YSN
3. Daimler Truck DTG
4. Puma PUM
5. Bic BB
6. Elis ELIS
7. Nokia NOKIA
8. BPER Banca BPE
9. Sixt Rent a Car SIX2
10. JDE Peet’s JDEP
Best-Performing Dividend Stocks in the Eurozone
Source: Morningstar Direct.
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 2.7% over the past month, but has risen 18.5% over the past year.
1-Year Performance for Dividend Stocks
Source: Morningstar Direct.
The overall eurozone stock market, as measured by the Morningstar Eurozone Index, has lost 3.3% on the month, but has risen 21.0% on the year.
Yields and Metrics for October’s Best-Performing Dividend Stocks
Societe Generale
French regional bank Societe Generale rose 18.1% in October and gained 29.0% over the past 12 months. Trading at EUR 26.39 per share, its stock has a forward dividend yield of 3.41%. Societe Generale pays investors a trailing 12-month dividend of EUR 0.90 per share. The stock, which has no economic moat, is currently trading near its fair value estimate of EUR 29.30 per share, leaving it with a Morningstar Rating of 3 stars.
Secunet Security Networks
German software infrastructure firm Secunet Security Networks rose 16.7% in October and lost 14.4% over the past 12 months. At EUR 107.40 per share, its stock has a forward dividend yield of 2.2% and a trailing 12-month dividend of EUR 2.36 per share. It has a quantitative Morningstar Rating of 3 stars.
Daimler Truck
German heavy machinery company Daimler Truck gained 13.0% in October and rose 34.7% over the past 12 months. The stock’s EUR 38.01 price gives it a forward dividend yield of 5%. Daimler Truck pays investors a trailing 12-month dividend of EUR 1.90 per share. The stock has a quantitative Morningstar Rating of 4 stars.
Puma
German accessory firm Puma rose 11.4% in October and lost 20.1% over the past 12 months. Trading at EUR 41.78 per share, Puma stock has a forward dividend yield of 1.96% and a trailing 12-month dividend of EUR 0.82 per share. The stock, which has no economic moat, is trading near its fair value estimate of EUR 47.50 per share. It has a Morningstar Rating of 3 stars.
Bic
French household and personal products company Bic gained 11.1% in October and rose 20.5% over the past 12 months. Trading at EUR 67.10 per share, its forward dividend yield is 4.25%. Bic pays investors a trailing 12-month dividend of EUR 2.85 per share. It has a quantitative Morningstar Rating of 3 stars.
Elis
French specialty business services firm Elis gained 11.0% in October and rose 37.2% over the past 12 months. At EUR 20.80 per share, Elis SA stock has a forward dividend yield of 2.07% and a trailing 12-month dividend of EUR 0.43 per share. It has a quantitative Morningstar Rating of 4 stars.
Nokia
Finnish communication equipment firm Nokia rose 11.0% in October and gained 41.9% over the past 12 months. Trading at EUR 4.33 per share, Nokia stock has a forward dividend yield of 2.77% and a trailing 12-month dividend of EUR 0.13 per share. The stock, which has no economic moat, is moderately undervalued, trading 21% below its fair value estimate of EUR 5.50 per share. It has a Morningstar Rating of 4 stars.
BPER Banca
Italian regional bank BPER Banca rose 10.9% in October and gained 92.2% over the past 12 months. Trading at EUR 5.60 per share, BPER Banca stock has a forward dividend yield of 5.36% and pays investors a trailing 12-month dividend of EUR 0.30 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Sixt Rent a Car
German rental and leasing company Sixt Rent a Car gained 10.7% in October and fell 5.9% over the past 12 months. The stock’s EUR 72.60 price gives it a forward dividend yield of 5.37%. Sixt Rent a Car pays investors a trailing 12-month dividend of EUR 3.90 per share. The stock has a quantitative Morningstar Rating of 3 stars.
JDE Peet’s
Dutch packaged foods company JDE Peet’s rose 10.3% in October and lost 18.4% over the past 12 months. At EUR 20.70 per share, JDE Peet’s has a forward dividend yield of 3.38% and a trailing 12-month dividend of EUR 0.70 per share. The stock, which has a narrow economic moat, is moderately undervalued, trading 23% below its fair value estimate of EUR 27 per share. It has a 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 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.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
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.
The author or authors do own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
