Start investing in European dividend growth stocks can be done for example with a basket of 15+ different individual dividend stocks to achieve differentiation and risk reduction. Alternatively, you could start with some European dividend ETF’s or Dividend oriented dividend funds and even with little money.
There are several European (high-)dividend equities indices available to invest in via ETFs, like the S&P 500 European Dividend aristocrats. Time to look at “best” European dividend ETF’s around based on three criteria (performance, fund size, and total expense ratio)
The best European dividend ETF by 1-year performance (29-dec-2020)
| # | Dividend ETF | ISIN | 1-year performance |
|---|---|---|---|
| 1 | Fidelity Europe Quality Income UCITS ETF | IE00BYSX4283 | -2.72% |
| 2 | WisdomTree Europe Equity UCITS ETF EUR Acc | IE00BYQCZX56 | -4.48% |
| 3 | Amundi ETF MSCI EMU High Dividend UCITS ETF | FR0010717090 | -6.43% |
The best European dividend ETF by fund size in €
| # | Dividend ETF | ISIN | Fundsize (€) |
|---|---|---|---|
| 1 | SPDR S&P Euro Dividend Aristocrats UCITS ETF | IE00B5M1WJ87 | 1,251m |
| 2 | iShares Euro Dividend UCITS ETF | IE00B0M62S72 | 780m |
| 3 | iShares EURO STOXX Select Dividend 30 UCITS ETF | DE0002635281 | 580m |
The best European dividend ETF by total expense ratio
| # | Dividend ETF | ISIN | total expense ratio (TER) per year |
|---|---|---|---|
| 1 | Amundi MSCI Europe High Dividend Factor UCITS ETF | LU1681041973 | 0.23% |
| 2 | Lyxor EURO STOXX Select Dividend 30 | LU0378434236 | 0.25% |
| 3 | iShares MSCI Europe Quality Dividend UCITS ETF | IE00BYYHSM20 | 0.28% |
Top-3 Dividend ETF details
Let’s zoom in on the top-3 best performing European dividend ETF this year, their top-10 positions, dividend yield, and more.
| Fidelity Europe Quality Income UCITS ETF | |||
| ISIN | IE00BYSX4283 | Dividend Policy | Accumulating |
| Benchmark | MSCI Europe High Div Yld | Total expense ratio | 0.30% p.a. |
The Fidelity Europe Quality Income index tracks dividend-paying large and mid-sized companies from Europe that have high-quality fundamental characteristics. The Fidelity Europe Quality Income index exists since November 2017 and it is a composition of 88 European dividend stocks.
| Top-10 Holdings |
| Nestle SA |
| ASML Holding NV |
| Roche Holding AG Dividend Right Cert. |
| Novartis AG |
| LVMH Moet Hennessy Louis Vuitton SE |
| Enel SpA |
| Air Liquide SA |
| Schneider Electric SE |
| Allianz SE |
| Novo Nordisk A/S B |
| WisdomTree Europe Equity UCITS ETF EUR Acc | |||
| ISIN | IE00BYQCZX56 | Dividend Policy | Accumulating |
| Benchmark | MSCI Europe NR | Total expense ratio | 0.32% p.a. |
The WisdomTree Europe Equity UCITS Index exists since November 2015. To be included in the index, companies must meet certain risk management criteria, as well as minimum liquidity requirements, WisdomTree’s ESG screen and have paid dividends over the prior annual cycle. The current dividend yield is 2.69% and the PE-ration is 19.94.
| Top-10 Holdings |
| Unilever PLC |
| Linde PLC |
| ASML Holding NV |
| Basf SE |
| L’Oreal SA |
| Koninklijke Ahold Delhaize NV |
| KONE Oyj Class B |
| LVMH Moet Hennessy Louis Vuitton SE |
| Sanofi SA |
| Siemens AG |
| Amundi ETF MSCI EMU High Dividend UCITS ETF | |||
| ISIN | FR0010717090 | Dividend Policy | Accumulating |
| Benchmark | MSCI EMU High Dividend Yield strategy index | Total expense ratio | 0.30% p.a. |
The Amundi ETF is replicating the MSCI High Dividend Yield Index targets companies with high dividend income and quality characteristics and includes companies that have higher than average dividend yields that are both sustainable and persistent.
| Top-10 Holdings | Weighting (%) |
| SCHNEIDER ELECT SE | 5.87 |
| ENEL SPA | 5.85 |
| IBERDROLA SA | 5.47 |
| ALLIANZ SE | 5.24 |
| CRH PLC | 5.18 |
| INDITEX | 5.1 |
| SIEMENS AG | 5.04 |
| KONE OYJ -B- | 4.95 |
| TOTAL SE | 4.75 |
| UNILEVER NV | 4.71 |
Other Sources of Dividend Investment Ideas
There are several lists to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Aristocrats Index is based on 64 companies part of the S&P 500 and with 25+ years of consecutive dividend increases.
- 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 in 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 years of dividend can be a list of inspiration.
- Blue Chips stocks from the US or the European ones.
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.
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