- The European Dividend Aristocrats are based (by S&P) on the 40 highest dividend-yielding Eurozone companies within the S&P Europe Broad Market Index (BMI).
- European Dividend Aristocrats managed dividends policy of increasing or stable dividends for at least 10 consecutive years, which is different from the US-edition.
- This article lists the current European Dividend Aristocrat constituents and their recent returns
- By showing the recent performance of the Europen Dividend Aristocrats, some active dividend growth investors may be able to identify relative bargains.
- The European Dividend Aristocrats posted a +8.5% return in April 2020.
After the global sell-off related to the corona-virus in March, the S&P Europe 350 gained 6% on the month, picking up steam in the final week as Germany, and Spain laid plans to allow citizens and businesses an exit from isolation.
The European Dividend Aristocrats showed a similar performance and posted a gain of 8.49% in April 2020. However, the (high yield) European Dividend Aristocrats are still down -21.3% year-to-date, which is a small underperformance compared to its benchmark.
The 10 years annualized total returns of the European Dividend Aristocrats and the S&P Europe 350 are 5.83% for the aristocrats and 4.44% for the SP Europe 350.
European Dividend Aristocrats – Dividend Cuts
Two European Dividend Aristocrats are removed from the index and Glanbia Plc has been added. Glanbia is specialized in the production and commercialization of dairy, nutritional, and food products for the food and pharmaceutical industries.
Axel Springer is removed from the index, since the publishing company is proposing to cut its dividend for 2019 to €1.16 per share, down from €2.10 euros in 2018. Furthermore, it planned to delist from the Frankfurt Stock Exchange as part of a € 63 per share takeover by U.S. private equity investor KKR.
Real-estate company Deutsche EuroShop is also removed from the index, although it has sufficient liquidity to pay the dividends (previously proposed at €1.55 per share), the Executive Board has decided, as a precaution for covid-19 impact, to propose the suspension of the dividend payment to the general assembly (scheduled for 16 June 2020).
European Dividend Aristocrats performance in April 2020
The table below lists all 39 constituents and lists returns over trailing last month, dividend yield plus the year-to-date performance.
Key takeaways from April’s performance:
- Top performance in April with more than 20% were Compagnie Plastic Omnium SA, Lagardere SCA, SCOR SE, Konecranes Plc, and Enagas, S.A
- Laggards: in April, only five European Dividend Aristocrats posted negative total returns, VINCI SA, Red Electrica, TOTAL S.A, Societe BIC SA, Nokian Renkaat Oyj .
- Year-to-date the three best performing dividend aristocrats are Koninklijke Vopak N.V., EDP, and Sanofi,
Dividends and Dividend Yield
Next to dividend growth investing, a high yield dividend could also be an approach. The table below lists the top-10 European Dividend Aristocrats sorted descending by the current dividend yield (end of April 2020).
The above-presented performance data of the European Dividend Aristocrats could assist active dividend growth investors to find some bargains for the long run. Interested in the latest data and also dividend growth rates, members can use the European dividend aristocrats dashboard.
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
Also, our monthly newsletter and premium member data will help you to invest smarter.
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