I’ll start by saying that Investing in Irish dividend stocks isn’t the most tax-efficient route. Maximising your pension arguably is much more efficient, but I always look at the after-tax returns. While it’s true that dividends are subject to taxes, I’d argue it’s still better to invest and grow your money, even if some goes to the taxman, than to sit on the sidelines.
After all, your returns can still compound and work in your favour over time. But of course, tax rules can be complex and often change, so it’s wise to chat with a financial advisor who can help you understand what you’ll keep in your pocket after taxes. Ultimately, it’s about making the most of your investment journey while keeping an eye on those post-tax figures.
Being a retail investor in Ireland has its fair share of challenges. The property market feels out of reach, there’s a healthy dose of scepticism around the pension system, and the tax rules on ETFs are, honestly, enough to drive anyone up the wall. (who knows if this video is anything to go by? Regulations may change over time. ETF Tax In Ireland Might Be Changing…)
Stick to what you know
After exploring other options, I found my way to dividend growth investing, and it’s been a refreshing change. As Peter Lynch once advised, “Invest in what you know.” So, that’s exactly what I’m looking at in Irish dividend stocks.
When picking Irish dividend stocks, I look for companies with a track record of paying (and hopefully raising) dividends. The best ones also have solid balance sheets, manageable debt, and some growth potential to keep those dividends coming in. Right now; there are a handful of companies on the Irish Stock Exchange and London Stock Exchange that fit this bill, each with at least five years of dividend payments under their belts.
There might’ve been more if not for the setbacks from COVID-19, which led some companies like Kingspan and Bank of Ireland to pause dividends. Still, there’s a solid group to work with, which I like to call “The Irish 6,” these stocks might just be the best options for any dividend investor here in Ireland.
Smurfit Westrock Group: Leading the Way in Sustainable Packaging
Why Smurfit Westrock Stands Out:
Formerly Smurfit Kappa Group, Smurfit Westrock stands out among Irish dividend stocks as a leader in sustainable packaging, winning recognition for its eco-friendly focus. Known for its innovative paper-based solutions, the company operates in over 30 countries and is serious about its green goals, aiming for net-zero emissions by 2050.
Smurfit Westrock follows a circular business model, using renewable and recyclable materials to meet the growing demand for sustainable products. In a big move, they issued €1 billion in green bonds in 2021 to fund projects that support their sustainability mission. This commitment strengthens their market position and makes them an appealing choice for investors interested in strong ESG values.
Yield – 2.35%, 5-Year CAGR – 9.25%, Chowder Rule – 11.60%
Glanbia: Fueling Health and Nutrition Worldwide
Why Glanbia is a Growth Driver:
As a Waterford man, I had to include Glanbia as a standout among Irish dividend stocks.It was my first buy as a beginner dividend investor. With a focus on science-based nutritional products, Glanbia caters to health-conscious consumers looking for everything from muscle-building protein powders to recovery-boosting drinks. Their dedication to innovation fuels a steady stream of new offerings, helping the company stay on top of changing consumer trends.
By consistently investing in research and development, Glanbia supports its stable dividend policy, making it a strong choice for investors interested in growth and reliable returns. With a growing market for health-focused products, Glanbia is well-positioned for the future, providing both solid dividends and potential for long-term growth.
Yield – 2.42%, 5-Year CAGR – 8.58%, Chowder Rule – 11%
Kerry Group: Innovating in Food and Flavour
What Makes Kerry Group a Strong Dividend Player:
Kerry Group is a top pick among Irish dividend stocks. It is a leader in food ingredients and taste solutions with a strong focus on health and sustainability. Known for innovations like Tastesense™, which reduces sugar without sacrificing flavour, Kerry is meeting the demand for healthier food options while supporting global sustainability efforts.
This dedication to better nutrition boosts Kerry’s market position and reinforces its stable dividend policy, making it appealing to investors. With over 80% of its products geared toward balanced nutrition, Kerry is well set to grow alongside healthy eating trends, offering reliable dividends and solid growth potential for shareholders.
Yield – 1.3%, 5-Year CAGR – 10.34%, Chowder Rule – 11.64%
Irish Continental Group: Powering Ireland’s Ports and Ferries
Why ICG Could Add Stability to Your Portfolio:
Irish Continental Group plays a vital role in Ireland’s transport and logistics sector, operating ferries and freight services that connect the island with mainland Europe. The company has demonstrated resilience through economic fluctuations, benefiting from strong cash flows generated by its essential services.
ICG’s commitment to returning value to shareholders is evident in its consistent dividend payments, which are supported by robust operational performance. As the demand for transport services continues to grow post-pandemic, ICG is well-positioned to provide stability and reliable income for investors seeking exposure to the logistics sector.
Yield – 3.25%, 5-Year CAGR – 2.99%, Chowder Rule – 6.24%
Greencoat Renewables: Sustainable Energy for Consistent Returns
Why Greencoat is a Green Investment Choice:
Greencoat Renewables invests in renewable energy infrastructure, primarily focusing on European wind farms. This focus allows the company to offer attractive dividends while contributing positively to environmental sustainability. With a current dividend yield of approximately 7%, Greencoat provides investors with opportunities for green dividends amid rising environmental awareness.
The company’s commitment to sustainable energy not only aligns with global climate goals but also positions it favourably within the growing renewable energy sector. As demand for clean energy sources increases, Greencoat’s investments will likely yield consistent returns for shareholders.
Yield – 7.46%, 5-Year CAGR – 1.81%, Chowder Rule – 9.27%
CRH: Building the Foundations of Infrastructure
Why CRH is Built for Growth:
Iv left the best of the Irish dividend stocks until last as they have been on fire since moving to the NYSE. CRH is a global leader in building materials, operating across various sectors, including construction and infrastructure development. The company boasts strong cash flows supported by its diversified operations and strategic acquisitions. With a history of consistent dividend payments, CRH appeals to investors looking for stability within the infrastructure sector.
Its recent focus on expanding into sustainable building materials further enhances its growth prospects while addressing increasing regulatory demands related to environmental impact. CRH’s balanced approach between reinvesting earnings and rewarding shareholders positions it as a compelling choice for those seeking reliable dividends.
Yield – 1.46%, 5-Year CAGR – 16.66%, Chowder Rule – 18.12%
I hope you enjoyed these Irish Dividend stocks. Let me know if there are others I should consider adding to this list.
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