Europe's Highest-Yielding Dividend Stocks

Income Week on wouldn't be complete without a map of the highest-yielding dividends paid by companies on the continent

Sunniva Kolostyak 24 May, 2024 | 11:35AM Ollie Smith
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It's Income Week across Morningstar's European editorial websites, so we've got the map out to look at high-yielding dividend opportunities at some of Europe's biggest companies.

Readers may remember our 2023 version of this piece – produced for last year's Income Week – but much has changed since then. Last time, most people would have agreed inflation was still "high". In the UK, it's now sitting just above the Bank of England's 2% target at 2.3%. Across the eurozone itself, it's only slightly higher – at 2.4%.

The war on price rises has made progress, then, but that's not the only thing that's changed.

The overall economic picture across Europe does now seem slightly brighter too. Just yesterday, S&P Global's provisional purchasing manager index survey rose to 52.3% for May 2024, from 51.7 in April. In the UK, the short-term economic outlook also looks slightly more certain. It's clearly certain enough for the prime minister to call a Summer election.

Despite the obvious positives, income remains crucial to retail investors' portfolios and, as far as equity investors are concerned, dividends are still a huge part of the picture.

Over the past year, the trend has been one of stable dividend growth across Europe, new dividends in the US (notably at Facebook owner Meta [Meta]), and, overall, the onward march of share buyback programmes as company boards bolster their share prices by rewarding investor patience.

To identify the companies in the below map of highest-yielding dividend stocks stocks, we used Morningstar Direct to select European companies that have paid dividends at some point since the start of 2022, and have an expected dividend "yield" (the formula used to calculate yield is to divide the annual dividend amount paid by a company per share by its current share price).

Across the UK and eurozone, investors can expect large dividend yields from a variety of larger and smaller companies. A word of caution: this is not necessarily a good thing long-term, as smart investors will look for sustainable sources of income from companies with good balance sheets and compelling economic moats.

Which European Large-Cap Stocks Pay The Highest-Yielding Dividends?

Beginning with the UK, the three highest-yielding dividend stocks for sale to investors include Ithaca Energy (ITH) with a yield of 18%; TORM (TRMD A) with a yield of 15%, and Phoenix Group (PHNX) whose dividend yield is 10%. Across the Eurozone, Germany, France, and Spain lead the yielders league table, with Deutsche EuroShop (DHRPY), France's Icade (ICAD), and Spain's Enagas (ENG) yielding 24%, 17%, and 15%, respectively.


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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Sunniva Kolostyak

Sunniva Kolostyak  is data journalist for

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