For dividend growth investors in Europe, we created a European Dividend Aristocrats certificate to easily track and invest in the European edition of the famous Dividend Aristocrats. With respect to the 2021 performance, the European Dividend Aristocrats outperformed the EuroStoxx 50 index significantly.
The European Dividend Aristocrats portfolio (EUDIVAR) gained 25.72% (all fees have already been deducted), while the European Index gained 20.75% in 2021. This is an outperformance of +4.97%. Compared to the Germany DAX the outperformance is even more significant since the DAX-index gained “only” 16.21%.
The five top European Dividend Aristocrats top performers are:
- Ashtead Group (GB0000536739)
- Croda (GB00BJFFLV09)
- DSV Panalpina (DK0060079531)
- Partners Group (CH0024608827)
- Hexagon (SE0015961909)
The five top European Dividend Aristocrats laggards are:
- Fresenius Medical Care (DE0005785802)
- Fresenius SE & Co (DE0005785604)
- GN Store Nord (DK0010272632)
- AVEVA Group (GB00BBG9VN75)
- Telenor (NO0010063308)
In total, the stocks in the portfolio generated €227,336 in net dividend in 2021 after withholding tax. The net dividend yield is just below 2%. The dividend withholding tax within the fund is optimized to 10.9% which could be a benefit for many European investors.
The European Dividend Aristocrats portfolio (EUDIVAR) includes all companies that have increased dividends every year for the last 10 consecutive years and are part of the MSCI Europe-index.
The holdings are equally weighted and every quarter an automatic rebalance will be performed. Companies that cut or postpone their dividend payments will be closely monitored and removed when required. In addition, new companies that meet the criteria will be added during the year. The dividends received will be reinvested automatically as well.
The tracker is officially listed on the German stock exchange Stuttgart and can be traded via several brokers such as Comdirect, Flatex, Onvista Bank, ING DiBa, Postbank, and many more.
European Dividend Aristocrats tracker benefits
When building a dividend growth portfolio, the most prominent advantages of the European Dividend Aristocrats tracker are:
Low Initial Investment. The minimum investment is limited only by your broker’s minimum account size and the brokerage fees related to the amount to be invested.
Automatic Diversification. By investing in the European Dividend Aristocrats tracker, you get the benefits of spreading your investment across all (45+) Dividend Aristocrats. You also get diversification across sectors and countries.
Automatic rebalancing. Every quarter rebalancing will be automatically done as well as dividend reinvesting without transaction costs. New aristocrats will be added and companies that cut or postpone dividend payments will be removed.
Dividend Tax benefits. Dividend withholding tax and dividend reclaims are often complex and time-consuming. Investors will benefit from lower dividend taxation via this European Dividend Aristocrats tracker. For several stocks that pay dividends and are traded in euro (€) the gross dividend amount will be received in this tracker.