Investing in dividend growth stocks is a popular strategy for many investors looking for stable and reliable returns. Dividend growth stocks provide investors with regular income in the form of dividends while also offering the potential for long-term capital appreciation.
In today’s blog post, we will be taking a look at five European dividend growth stocks that are in my portfolio for 2023. These companies have a strong history of paying consistent dividends, as well as a promising outlook for future growth.
BASF
BASF SE is a German multinational chemical corporation that is primarily involved in the production of chemicals, plastics, and performance products. The company operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions.
The Chemicals segment is the most significant contributor to the company’s revenue and includes products such as basic chemicals and intermediates, monomers, and polymers. The Materials segment offers high-performance materials and includes products such as polyurethane systems, performance materials, and catalysts. The Industrial Solutions segment provides solutions for a variety of industries, including oil and gas, automotive, construction, and electronics.
In terms of financial performance, BASF has consistently reported strong earnings and revenue growth over the past several years. The company has a strong balance sheet and a solid cash flow, which provides a strong foundation for its dividend payments. BASF has a long history of paying dividends and has increased its dividend payments consistently over the past decade, indicating a commitment to returning value to its shareholders.
BASF will report its FY results on February 24th, and I will be expecting a dividend increase of ~3%.
Next Dividend Pay Date: 3rd May 2023 Annual Dividend per share: € 3.40. Dividend Yield 6.58%
check out my video on Unilever
Koninklijke Ahold Delhaize
Ahold Delhaize is a multinational retail company that operates in Europe and the United States. It was formed in 2016 as a result of a merger between Ahold, a Dutch retail company, and Delhaize, a Belgian retail company.
In Europe, Ahold Delhaize operates through several retail brands, including Albert Heijn, Delhaize, and bol.com. Albert Heijn is a well-known Dutch supermarket chain that has over 1,000 stores in the Netherlands and Belgium. Delhaize operates in Belgium, Luxembourg, Greece, and Romania and has over 1,500 stores. Bol.com is an online retailer that operates in the Netherlands and Belgium.
In the United States, Ahold Delhaize operates through its subsidiaries, which include Stop & Shop, Food Lion, Giant Food, and Hannaford. Stop & Shop is a regional supermarket chain that operates in the northeastern United States, with over 400 stores. Food Lion is a grocery store chain that operates in the southeastern United States, with over 1,000 stores. Giant Food is a supermarket chain that operates in the mid-Atlantic region, with over 160 stores. Hannaford is a supermarket chain that operates in the northeastern United States, with over 180 stores.
Ahold Delhaize is one of the largest retail companies in the world, with a presence in 11 countries and over 7,000 stores. The company has a strong focus on sustainability and has set ambitious targets for reducing its environmental impact. Ahold Delhaize is also investing in digital technologies to improve the customer experience, focusing on online ordering and home delivery.
Ahold has posted strong FY 2022 results, which you can view here, and it includes a dividend increase of 10% for 2022.
Next Dividend Pay Date: 27th April 2023 Annual Dividend per share: € 1.05. Dividend Yield 3.53%
British American Tobacco
British American Tobacco, also known as BAT, is a leading multinational tobacco company with operations in over 180 countries worldwide. The company is headquartered in London, UK, and is known for its portfolio of well-known cigarette brands, including Lucky Strike, Dunhill, Kent, and Pall Mall.
BAT’s business operations are focused on the production, marketing, and sale of tobacco products, including cigarettes, cigars, and tobacco blends. The company operates through several regional and local subsidiaries, each responsible for the management of local operations and the development of new products.
In addition to its core tobacco business, BAT has made significant investments in developing new products and technologies in recent years. The company is a major player in the emerging market for reduced-risk tobacco and nicotine products, including e-cigarettes and heated tobacco products. BAT’s portfolio in this area includes its Vype and Glo brands, which have gained significant market share in recent years.
Next Dividend Pay Date: 3rd May 2023 Annual Dividend per share: 230.88p. Dividend Yield 7.33%
SHELL
Shell, formerly known as Royal Dutch Shell, is one of the largest multinational oil and gas companies in the world. The company is headquartered in The Hague, Netherlands, and has operations in over 70 countries worldwide. Shell’s business operations are divided into three main segments: Upstream, Downstream, and Integrated Gas.
The Upstream segment is responsible for the exploration and production of oil and gas resources around the world. Shell has a diverse portfolio of upstream assets, including onshore and offshore fields, deepwater developments, and unconventional resources like shale gas. The company is also investing in new technologies to improve efficiency and reduce its environmental impact in its upstream operations.
The Downstream segment is focused on the refining and marketing of oil and gas products, as well as the production of chemicals and lubricants. Shell has a strong presence in the global fuels and lubricants market, with a range of well-known brands like Shell V-Power and Shell Helix. The company is also investing in new technologies and partnerships to develop lower-carbon fuels and reduce its environmental impact in its downstream operations.
The Integrated Gas segment is responsible for the production and marketing of liquefied natural gas (LNG) and gas-to-liquids (GTL) products. Shell is a major player in the global LNG market, with a range of projects and partnerships around the world. The company is also investing in new technologies and partnerships to develop lower-carbon gas products and reduce its environmental impact in its integrated gas operations.
Next Dividend Pay Date: 27th March 2023 Annual Dividend per share: €1.04. Dividend Yield 3.62%
Schneider Electric
Schneider Electric is a multinational corporation that specializes in energy management and automation solutions. The company is headquartered in Rueil-Malmaison, France, and operates in over 100 countries around the world. Schneider Electric’s business operations are focused on providing innovative and sustainable solutions that help customers optimize their energy use and reduce their environmental impact.
Schneider Electric’s products and services cover a wide range of applications, including building automation, energy management, industrial automation, and electrical distribution. The company’s solutions are designed to improve energy efficiency, reduce waste, and enhance the overall performance of a variety of systems and processes.
In the building automation sector, Schneider Electric provides solutions for HVAC (heating, ventilation, and air conditioning) systems, lighting control, and security systems, among other applications. The company’s energy management solutions include software and hardware that enable customers to monitor and control their energy consumption, identify energy-saving opportunities, and optimize their energy use.
In the industrial automation sector, Schneider Electric provides a range of products and services for the control and automation of industrial processes, including software, sensors, and control systems. The company’s electrical distribution solutions include a range of products for low and medium-voltage electrical distribution, as well as energy storage and management solutions.
The company has a long history of paying dividends, with a track record of consistent and increasing payouts to its shareholders. Schneider Electric has consistently increased its dividend for the past 12 years, with a compound annual growth rate of over 7% over the last five years. In 2021, the company announced a dividend of €3.15 per share, representing an 11% increase compared to the previous year. With a payout ratio of around 50%, Schneider Electric’s dividends are considered to be sustainable and supported by its strong financial position.
Next Dividend Pay Date: 11th May 2023 Annual Dividend per share: €3.15. Dividend Yield 2.%
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