You are currently viewing EP #211 | 4 European Dividend Stocks with a Safe Dividend

EP #211 | 4 European Dividend Stocks with a Safe Dividend

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In Episode 211 of the Dividend Talk podcast, we highlight four European Dividend Stocks known for their stability and reliable returns, but they are not too often talked about. If you’re looking for dependable investments with solid dividends, this episode is might be for you.

News of the Week: OnlyFans Pays $630 Million in Dividends

OnlyFans, the UK-based platform renowned for its subscription-based content from various creators, has paid over $630 million in dividends to its owner, Leonid Radvinsky, since the beginning of last year. In 2023, the company disbursed $6.6 billion to its creators, marking a $1 billion increase from the previous year. The platform, which retains a 20% cut of transactions, has seen substantial growth, with creator accounts rising to 4.1 million and fan accounts reaching 305 million. Despite its association with adult content, OnlyFans also hosts diverse content, from sports to wellness.

In other news, recent dividend hikes include VICI Properties raising its dividend by approximately 4% to $0.4325, Brady Corporation increasing its payout by 2.1% to $0.24 per share, and Broadcom boosting its dividend by 1%.

Main Topic – 4 European Dividend Stocks with Safe Dividends

Investing in European dividend stocks offers a unique opportunity to build a portfolio with a strong and reliable income stream. In this episode, we explore four standout European dividend stocks from our dividend dashboard—Mensch und Maschine (MUM.DE), Hornbach (HBH.DE), Carlsberg (CARL-B.CO), and Evolution Gaming (EVO.ST) —each offering a combination of safety and growth potential.

1. Mensch und Maschine: A High-Margin Software Specialist

Mensch und Maschine, a German software company, has transitioned from being primarily an Autodesk reseller to developing its own high-margin software solutions. This shift has significantly boosted its gross margins to around 90%, making it a lucrative player in the software industry. Despite previous dividend cuts, Mensch und Maschine’s strong balance sheet and focus on reducing debt make it a resilient choice among European dividend stocks.

2. Hornbach: Stability from a Family-Owned Business

Hornbach, a family-owned DIY giant, boasts a rich history and strong market presence in Europe. The company has consistently delivered stable cash flows and maintains a conservative payout ratio of around 30%. While the dividend has remained flat for a few years, Hornbach’s disciplined financial management and focus on long-term growth make it a reliable option among European dividend stocks.

3. Carlsberg: A Brewer with Global Reach and Dividend Consistency

Carlsberg, the world’s third-largest brewer, is known for its robust dividend history and commitment to shareholder returns. The company has consistently exceeded its financial targets and maintains a strong balance sheet. Carlsberg’s strategic acquisitions, such as Britvic, and its focus on premium brands position it as a safe and profitable choice among European dividend stocks.

4. Evolution Gaming: High Growth in the Gaming Industry

Evolution Gaming, a Swedish company specializing in live casino services, has demonstrated remarkable growth with a five-year dividend CAGR of 65%. Despite some challenges related to labor issues, the company continues to expand globally, particularly in the U.S. market. With a current dividend yield of 2.75%, Evolution Gaming offers both growth and income, making it a compelling pick among European dividend stocks.

Listener Questions

In this week’s questions, listeners are seeking insights on various investing strategies and stocks. Yuval asks about the rationale behind avoiding the industrials and materials sectors near retirement. Yan wonders about the impact of potential higher taxes on dividends if state pensions become less reliable. Dividend Phil addresses the challenge of sector allocation when reinvesting dividends during the accumulation phase. Filip Zymek focus on managing small positions that have appreciated significantly, the strategy of buying on market dips, and how to handle declining cash flows in companies. On the stock front, queries cover whether to sell tobacco stocks after a recent surge, thoughts on LVMH amid pressure in China, and evaluating positions in companies like RevolutionRace, Cake Box Holdings, and others. Additionally, readers are interested in advice on European and global property investments, currency exposure for buying stocks, and the potential of companies like ASML and Microsoft.

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Stocks mentioned in this episode:

  • Mensch und Maschine (MUM.DE)
  • Carlsberg (CARL-B.CO)
  • Hornbach (HBH.DE)
  • Evolution AB (EVO.ST)
  • VICI Properties (VICI)
  • Brady Corporation (BRC)
  • Broadcom (AVGO)
  • Verizon (VZ)
  • Aker BP (AKRBF)
  • LVMH (LVMUY)
  • Rio Tinto (RIO)
  • Microsoft (MSFT)
  • Cake Box Holdings (CBOX.L)