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Which Stocks Will Be Europe’s Dividend Stars in 2025?

Stellantis, Nordea Bank, and Orange are some of the stocks with the highest dividend yields at the start of 2025.

Christopher Johnson 17 January, 2025 | 2:35PM
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Christopher Johnson: Last week, we identified which UK stocks could be 2025 dividend stocks. But are there standout dividend payers in Europe too? Looking at Morningstar data, we found the top three undervalued and high yielding European dividend payers. Italian American car manufacturer Stellantis has a dividend yield of 12.81% and paid an annual dividend of €1.55.

CJ: The company is currently trading at €12.33, below Morningstar’s fair value estimate of €18.90. After a nearly 40% fall in the share price over one year, this explains the move in a dividend yield above 10%. Stellantis owns brands ranging from Chrysler to Fiat, and was the UK’s bestselling electric van manufacturer in 2024. However, in November of last year, the company announced it could close its Luton van plants in April. Now the bank comes in second place. The leading Nordic bank has an 8.3% dividend yield. Nordic Bank is currently trading at around 128.15 Swedish krona, below Morningstar’s fair value estimate of 152 Swedish krona. Morningstar analysts are bullish on Nordea because the bank’s management has successfully addressed the declining income and slowing profitability it faced in recent years. Nordea is now tapping into investments in private banking in Norway and Sweden, and by regaining momentum on mortgages.

CJ: French telecommunications giant Orange has an annual dividend yield of 7.27% and pays an annual dividend of 0.72 cents. Orange is currently trading at €10.08, marginally below Morningstar’s fair value estimate of almost €13.40. Morningstar analysts back the company because it is a leading telecommunication provider in France. They say it owns the best mobile and fixed line networks and enjoys long standing relationships with the French government. Orange also has a growing footprint in Africa, an advantage that puts it ahead of its European competitors.


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Christopher Johnson  is data journalist at Morningstar

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