How do I invest in European dividend stocks?

An investment in high-dividend-yielding stocks is a solid investment. Dividends are usually paid by profitable and established companies. For investors seeking regular income in times of low interest rates, dividend stocks can provide attractive yields.

There are several indices available to invest with ETFs in European high-dividend equities. This Investment Guide for European dividend stocks will help you to differentiate between the most important indices and to select the best ETFs tracking indices on European dividend stocks.

Le meilleur European dividend ETF selon le rendement sur un an au 30/06/2024

Classement de tous les $rankingLink en fonction de leur rendement

Le plus grand European dividend ETF en fonction du volume du fonds en EUR

Classement de tous les $rankingLink en fonction du volume du fonds

L’European dividend ETF le plus avantageux en fonction des frais totaux sur encours

Classement de tous les $rankingLink en fonction des frais totaux sur encours

Methodologies of the compared indices

Source: justETF Research; as of 28/02/22

EURO STOXX® Select Dividend 30 index

The EURO STOXX® Select Dividend 30 index consists of a selection of 30 companies from the Eurozone that meet criteria for high dividend quality. The parent index is the EURO STOXX® index. Securities are selected based on their indicated dividend yield and their historical dividend policy. The selected stocks are weighted by their indicated dividend yield.

Methodology of the EURO STOXX® Select Dividend 30 Factsheet Methodology

• 30 dividend stocks from Eurozone countries
• Investment universe: EURO STOXX® index, which includes appr. 300 companies
• Stock selection is based on the indicated dividend yield. In addition, companies must meet certain requirements with respect to dividend quality and payout ratio
• Selection criteria: positive dividend growth over five years, dividend payments in four of the last five years, non-negative payout ratio (max. 60%)
• Index rebalancing takes place annually in March
• Index weighted by indicated dividend yield

MSCI EMU High Dividend Yield index

The MSCI EMU High Dividend Yield index focuses on the highest dividend stocks in the Eurozone. This dividend index includes 40 companies (as of 28/06/2024) which are selected according to quality factors and dividend strength. The criteria include a dividend yield of at least 30 percent above the average of the underlying index (MSCI EMU index) and a non-negative dividend growth rate over the last 5 years. The selected stocks are weighted by their free float market capitalization.

Methodology of the MSCI EMU High Dividend Yield Factsheet Methodology

• 40 dividend stocks from Eurozone countries (as of 28/06/2024)
• Investment universe: MSCI EMU index, which includes 225 shares (as of 28/06/2024), excluding REITs
• Stock selection is based on the indicated dividend yield
• Selection criteria: quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years
• Index rebalancing takes place semi-annually in May and November
• Index weighted by free float market capitalization
• Maximum weight per individual stock is 5%

MSCI Europe High Dividend Yield index

The MSCI Europe High Dividend Yield index focuses on the highest dividend stocks from Europe. This dividend index includes 74 companies (as of 28/06/2024) which are selected according to quality factors and dividend strength. The criteria include a dividend yield of at least 30 percent above the average of the underlying index (MSCI Europe index) and a non-negative dividend growth rate over the last 5 years. The selected stocks are weighted by their free float market capitalization.

Methodology of the MSCI Europe High Dividend Yield Factsheet Methodology

• 74 dividend stocks from 15 European countries (as of 28/06/2024)
• Investment universe: MSCI Europe index, which comprises 418 European equities (as of 28/06/2024), excluding REITs
• Stock selection is based on the indicated dividend yield
• Selection criteria: quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years
• Index rebalancing takes place semi-annually in May and November
• Index weighted by free float market capitalization
• Maximum weight per individual stock is 5%

S&P Euro High Yield Dividend Aristocrats index

The S&P Euro High Yield Dividend Aristocrats index focuses on long-term and stable dividend growth. It is based on the S&P Europe Broad Market Index (BMI), but only includes stocks from Eurozone countries. A company is only included in the S&P Euro High Yield Dividend Aristocrats index if it has at least 10 consecutive years of a controlled dividend policy with rising or stable dividend payments. In addition, pre-defined yield criteria must be met. Despite the strict inclusion rules, the limits for individual securities, sector and country weightings ensure that no cluster risks arise in the index. The selected stocks are weighted by their indicated dividend yield.

Methodology of the S&P Euro High Yield Dividend Aristocrats Factsheet Methodology

• Appr. 40 dividend stocks from Eurozone countries
• Investment universe: S&P Europe Broad Market Index (BMI), which includes 1,816 European stocks (as of 28/02/22). Only Eurozone companies are included
• Stock selection is based on the indicated and the historical dividend yield
• Selection criteria: controlled dividend policy with rising or stable dividends for at least 10 consecutive years
• Index rebalancing takes place quarterly, reviews take place monthly
• Index weighted by indicated dividend yield
• Weight per individual stocks max. 5%; weight per sector/country max. 30%

STOXX® Europe Select Dividend 30 index

The STOXX® Europe Select Dividend 30 index comprises a selection of 30 companies from Europe that meet criteria for high dividend quality. The parent index is the STOXX® Europe 600 index. Securities are selected based on their indicated dividend yield and their historical dividend policy. The selected stocks are weighted by their indicated dividend yield.

Methodology of the STOXX® Europe Select Dividend 30 Factsheet Methodology

• 30 dividend stocks from Europe
• Investment universe: STOXX® Europe 600 index
• Stock selection is based on the indicated dividend yield. In addition, companies must meet certain requirements with respect to dividend quality and payout ratio
• Selection criteria: positive dividend growth over five years, dividend payments in four of the last five years, non-negative payout ratio (max. 60%)
• Index rebalancing takes place annually in March
• Index weighted by indicated dividend yield

Pour la sélection d’un European dividend ETFs, outre la méthodologie de l’indice et les performances, d’autres facteurs jouent un rôle important lors de la décision. Pour faciliter la comparaison, vous trouverez une liste des European dividend stocks avec les indications relatives à la taille, aux frais, à l’utilisation des revenus, au domicile du fonds et à la méthode de réplication classée en fonction de la taille des fonds.

Comparaison détaillée de tous les $rankingLink
Comparaison graphique de tous les $rankingLink

Source : justETF.com ; situation au : 15/07/2024

Comparaison des performances des European dividend ETFs

Le tableau suivant compare les performances de tous les European dividend ETFs. Toutes les indications relatives aux performances sont données à la fin du mois et comprennent les distributions. Outre les performances à une date de référence, l’évolution dans le temps est décisive pour la comparaison des ETFs. Pour cela, servez-vous aussi de nos comparaisons graphiques.

• Par périodes
• Par années

Source : justETF.com ; situation au : 30/06/2024 ; indications en EUR, distributions comprises