When I first stumbled upon dividend investing, it felt like finding a hidden treasure chest. Imagine a steady stream of income from simply holding shares of well-established companies that increase their payouts year after year! Dividend Investing was a real light bulb moment for me. European Dividend Aristocrats were not as popular, but it was not long before I learned about Dividend Aristocrats. They are companies with a proven track record of rewarding shareholders.
In the U.S., Dividend Aristocrats formed from blue chip companies often form the backbone of income-focused portfolios. But what about European Dividend Aristocrats. While they are not published as much as the U.S list, we have our own elite group of Dividend Aristocrats. European Aristocrats are just as impressive and more relatable for those of us with a European bias. (eDGIs Nobel 20 list is a good place to start).
Why European Dividend Aristocrats?
If you’re like me and want your portfolio to have a local touch, European Dividend Aristocrats are a great alternative. They’re not only resilient but they are generally more conservative in their payout approaches. This can help support sustainable dividends even when times get tough. Actually one of the nice things about most European companies is that they will usually provide a clear Dividend Policy. This is useful to understand how the company will likely react in challenging times.
For a European investor, there’s an extra benefit: a lot of these companies operate in stable, mature markets, providing exposure to a more balanced, steady economy than some high-flying growth stocks (Tesla). Plus, investing locally often means no currency exchange (almost), making those dividend payments even sweeter!
What Makes a European Company part of the Dividend Aristocrats?
European Dividend Aristocrats do not have the same stringent requirements as U.S. Aristocrats, but don’t let that put you off. In Europe, companies qualify with a minimum of 10 consecutive years of dividend increases. This is 15 years less compared to the 25 required in the U.S.
Here’s the key criteria for our European Aristocrats:
- Must be a member of the S&P Europe 350 Index
- At least 10 years of consecutive dividend increases
- Market capitalization over US$ 3 billion
- Average daily trading volume above US$ 5 million
This means that while U.S. Aristocrats are all about long-term growth, European companies lean toward stability and steady payouts. European ficompanies also tend to maintain a more conservative free cash flow (FCF) payout ratio (usually between 40% and 60%), meaning they avoid putting too much pressure on cash flows and can maintain dividends even during rough patches.
European Dividend Aristocat Critera for Selection in this list
Consitant with my own portfolio, I’m looking at companies with a starting yield of at least 3%, a solid five-year dividend growth rate (CAGR) of 6%, and that track record of at least 10 years of dividend growth. In my opinion, it’s the sweet spot for a reliable mix of growth and income.
One of the reasons I’m so enthusiastic about European Dividend Aristocrats is that they offer something U.S. stocks often don’t: high initial yields. However, European Dividend Aristocrats don’t just have a high yield; they also have strong dividend growth rates. For instance, companies like Munich RE and Ahold have long histories of not only paying dividends but also growing them year after year. These aren’t just occasional payouts, they’re signals of financial health, indicating that these companies can cover their dividend obligations consistently.
As investors, we all have a bit of “home bias,” right? There’s something satisfying about investing in companies that are part of our daily lives – whether it’s Roche’s pharmaceutical breakthroughs or Diageo’s well-known beverage brands. And while you don’t need to limit your investments to your home region, there’s a unique comfort in European Dividend Aristocrats.
Top European Dividend Aristocrats
Münchener Rück AG
Dividend Not Cut: 53 years , Current Yield: 3.19% , 5-Year Dividend Growth Rate: 10.15%
Munich Re, one of the world’s top reinsurance and insurance companies, has a reputation built on solid financial strength and smart risk management. Founded way back in 1880, it makes money mainly through reinsurance, where it takes on some of the risks faced by other insurers, letting them manage their exposure better.
It also has a direct-to-consumer insurance branch, ERGO, that offers health, life, and property insurance, along with an asset management division (MEAG) that generates returns from invested premiums. Known for being innovative, Munich Re covers unique risks like cyber threats and renewable energy, adding to its steady revenue.
Investors trust Munich Re for its financial strenght, low payout ratio, and consistent dividend policy; for instance, it recently proposed a €15 dividend per share for FY 2023. With a strategy targeting at least 5% dividend growth annually, Munich Re offers a reliable mix of stability, growth, and shareholder value.
Koninklijke Ahold Delhaize NV
Dividend Not Cut: 17 years , Current Yield: 3.43% , 5-Year Dividend Growth Rate: 7.87%
Koninklijke Ahold Delhaize, formed by merging Dutch Ahold and Belgian Delhaize, is a major multinational grocery retailer with a strong foothold in both the U.S. (where it earns around 65% of its revenue) and Europe. The company also owns bol.com, often called the Dutch Amazon, which it plans to spin off. A move that could potentially unlock extra shareholder value.
Ahold Delhaize aims for a 40-50% dividend payout from its core income and is committed to sustainable dividend growth, even adjusting for one-time expenses to keep payouts stable. Their focus on rewarding shareholders is clear, with a €1 billion annual share buyback program that further enhances shareholder returns on top of their growing dividend. This strong presence in two major markets and an attractive shareholder policy make Ahold Delhaize a solid choice for dividend growth investors.
Carlsberg A/S
Dividend Not Cut: 13 years , Current Yield: 3.66% , 5-Year Dividend Growth Rate: 8.45%
Carlsberg, founded in 1847, has grown into one of Europe’s most iconic beer brands, known for its sponsorships with Liverpool FC and the Republic of Ireland football team. With a portfolio of over 140 brands like Carlsberg, Tuborg, and 1664 Blanc, Carlsberg holds strong market positions, especially in Western Europe and Asia, where it leverages premium pricing strategies.
Even with challenges in Central Europe, Carlsberg remains the world’s third-largest brewer and has shown resilience by boosting revenue despite lower volumes. Its recent acquisition of Britvic PLC for around £4.1 billion fits well with its Accelerate SAIL strategy, aiming for sustainable growth and improved efficiency. Britvic’s brands, including Robinsons and Pepsi Max, not only expand Carlsberg’s offerings but also strengthen its relationship with PepsiCo, paving the way for cost savings and better profitability.
Iberdrola S.A.
Dividend Not Cut: 11 years , Current Yield: 4.16% , 5-Year Dividend Growth Rate: 6.58%
Iberdrola is all in on the journey toward a carbon-neutral economy by 2050. They see it as essential for both economic growth and a healthier planet. With over €140 billion already invested in renewable energy infrastructure, including one of the world’s largest smart grid systems, Iberdrola is leading the charge in low-emission energy. And they’re not slowing down. By 2030, they plan to invest up to €75 billion more, aiming for 100,000 MW in installed capacity.
What’s especially appealing for dividend growth investors is Iberdrola’s focus on smart, profitable investments. It prioritises returns while supporting renewables like wind, solar, hydro, and hydrogen projects in high-credit countries. Plus, with a dividend policy that promises an attractive, growing payout, Iberdrola’s approach offers both environmental impact and steady income for long-term investors.
Deutsche Post AG
Dividend Not Cut: 17 years , Current Yield: 5.22% , 5-Year Dividend Growth Rate: 9.98%
Deutsche Post AG, founded in 1490 and based in Bonn, Germany, has grown into a global logistics powerhouse through its DHL brand. Operating across five key segments—Express, Global Forwarding/Freight, Supply Chain, eCommerce Solutions, and Post & Parcel Germany—the company offers everything from time-sensitive courier services to comprehensive freight and logistics solutions.
With e-commerce on the rise, DHL’s package delivery business is well-positioned for long-term growth. This growth is supported by years of strategic investment in its network and operations. Known for its fast, reliable shipping and global reach, DHL has built a robust intercontinental network that not only boosts profitability but also gives it a solid edge over competitors.
Allianz SE
Dividend Not Cut: 16 years , Current Yield: 4.81% , 5-Year Dividend Growth Rate: 8.92%
The last European Dividend Aristocrats is Allianz SE. Allianz SE, headquartered in Munich, is a giant in the insurance and asset management world. They provide everything from life and health insurance to property and specialty coverage. They also manage investments for individuals and institutions, adding a solid diversification to their revenue streams. Allianz is committed to rewarding shareholders with steady dividends. It aims for a 60% payout of net income, adjusted for any big, unexpected items.
With 95% of its revenue coming from property-casualty and life/health insurance, Allianz benefits from economies of scale that are tough for competitors to match. This, combined with a strong balance sheet, positions Allianz well for growth that outpaces inflation, making it a solid choice for dividend-focused investors.
Support Us
There are a couple of ways that you can support me if you like my content
Free Ways to support us
- Follow us on social media. Twitter or DividendTalk (@dividendtalkpodcast) • Instagram photos and videos
- Listen to our Podcast Dividend Talk | Podcast on Spotify
- Follow my Buddy Home European Dividend Growth Investor – European Dividend Growth Investor (europeandgi.com)
- Subscribe to my youtube channel – Dividend Talk – YouTube.
Affiliate links, there are services I use. If you are planning to use these anyway, then it won’t cost you more, but I may receive a commission.
- Seeking Alpha – I use seeking alpha quite a bit. They have a free version, but I will get a commission if you sign up for the premium version. ( I use the premium version)
- Buy me a coffee – if you don’t want to use any of the above services, you can always buy me a coffee.
- Buy a bracelet from my niece – BraceletsByLucyIE – Etsy Ireland. I am trying to teach my niece what they won’t teach her at school. 15% of all profits are mine. However I donate this to charity as my main goal is to teach Lucy about business
Disclaimer
Dividend talk is not a licensed or registered investment adviser or broker/dealer. We are not providing you with individual investment advice on this site. Please consult with a licensed investment professional before you invest your money. This site is for entertainment, informational, and educational use only.
Any opinion expressed on the site here and elsewhere on the internet is not a form of investment advice provided to you. We use information, data, and sources in the articles we believe to be correct at the time of writing them, but there is no guarantee of their accuracy, completeness, timeliness, or correctness. We are not liable for any losses suffered by any party because of information published on this site. Past performance is not a guarantee of future performance. By reading this site or subscribing to it, you agree that you are solely responsible for making investment decisions in connection with your funds.
