11 Best European Dividend Stocks to Buy

In This Article:

In this article, we will take a detailed look at the 11 Best European Dividend Stocks to Buy. For a quick overview of such stocks, read our article 5 Best European Dividend Stocks to Buy.

European equities were laggards when compared to US stocks in 2023 as economic activity in the Eurozone continues to contract. In December, the Eurozone saw its economic activity shrink for the seventh straight month. However, analysts at Citigroup believe 2024 will bring a positive change as they expect European stocks to hit record high in the year. Citigroup analyst Beata Manthey recently said that bad news is already priced in for European stocks. The analyst expects the regional benchmark Stoxx 600 Index to end 2024 at 510 points. As of December 18 the index was at 476 points. Citigroup’s analyst said the market has become too pessimistic when it comes to earnings growth expectations for European stocks. This development, she believes, has created a buffer zone to protect stocks from further declines should the European companies post disappointing earnings next year.

While we have analyzed US dividend stocks like Verizon Communications Inc. (NYSE:VZ), Altria Group, Inc. (NYSE:MO), and Pfizer Inc. (NYSE:PFE) consistently over the past few months, in this article we will be taking a look at some European dividend stocks hedge funds are piling into.

Methodology

For this article we first used a stock screener to identify companies headquartered in Europe with dividend yields of at least 2% as of December 15. From the resultant dataset we picked 11 companies with the highest number of hedge fund investors. Most of these companies are headquartered in Europe but have operations in the US and other parts of the world. The list is ranked in ascending order of the number of hedge fund investors. Hedge fund sentiment data was taken from Insider Monkey’s database of 910 hedge funds.

 Best European Dividend Stocks to Buy
Best European Dividend Stocks to Buy

Photo by Viacheslav Bublyk on Unsplash

11. TE Connectivity Ltd (NYSE:TEL)

Number of Hedge Fund Investors: 46

Switzerland-based TE Connectivity Ltd (NYSE:TEL) make sensors and connectors for various industries. TE Connectivity Ltd (NYSE:TEL) has increased its dividend consistently since 2007. Earlier this month, TE Connectivity Ltd (NYSE:TEL) said its board approved an increase in its share repurchase program by an additional $1.5 billion. The company also approved a recommendation to increase its quarterly dividend from $0.59 to $0.65 per share for the four fiscal quarters starting in April 2024.

As of the end of the third quarter of 2023, 46 hedge funds had stakes in TE Connectivity Ltd (NYSE:TEL).