As European markets experience a positive upswing, with the STOXX Europe 600 Index climbing 2.77% amid easing trade tensions and economic stability, investors are increasingly looking towards dividend stocks as a reliable income source. In such an environment, selecting dividend stocks that offer attractive yields can be an effective strategy for generating steady returns while navigating market uncertainties.
Overview: Ipsos SA, with a market cap of €1.79 billion, operates globally through its subsidiaries to offer survey-based research services for companies and institutions across Europe, the Middle East, Africa, the Americas, and the Asia-Pacific.
Operations: Ipsos SA generates revenue through its global subsidiaries by providing survey-based research services across various regions, including Europe, the Middle East, Africa, the Americas, and the Asia-Pacific.
Dividend Yield: 4.4%
Ipsos SA recently announced a dividend increase to €1.85 per share, indicating a commitment to returning value to shareholders. Despite an unstable dividend track record, the dividends are well covered by earnings and cash flows with payout ratios of 38.9% and 29.7%, respectively. The company's revenue rose slightly in Q1 2025, reaching €568.5 million from €557.5 million the previous year, supporting its capacity for consistent payouts amidst volatile past distributions.
Overview: Teleperformance SE operates as a digital business services company both in France and internationally, with a market cap of approximately €5.71 billion.
Operations: Teleperformance SE generates revenue through its Specialized Services (€1.49 billion), Core Services & D.I.B.S - Americas (€4.18 billion), and Core Services & D.I.B.S - Europe, Middle East & Africa (EMEA) & APAC (€4.61 billion) segments.
Dividend Yield: 4.4%
Teleperformance's dividend is robust, with a payout ratio of 47.9% and cash payout ratio of 15.6%, ensuring coverage by earnings and cash flows. The company declared an annual dividend of €4.20 per share, reflecting growth over the past decade with stable payments. Despite a lower yield compared to top French market payers, its dividends remain reliable amidst revenue growth to €2.61 billion in Q1 2025, supporting ongoing shareholder returns despite high debt levels.
Overview: Afry AB offers engineering, design, and advisory services across the infrastructure, industry, and energy sectors globally with a market cap of SEK18.97 billion.
Operations: Afry AB generates its revenue from several segments, including Infrastructure (SEK10.50 billion), Industrial & Digital Solutions (SEK6.77 billion), Process Industries (SEK5.09 billion), Energy (SEK3.95 billion), and Management Consulting (SEK1.65 billion).
Dividend Yield: 3.6%
AFRY's dividend is supported by a payout ratio of 60.5% and a cash payout ratio of 36.2%, indicating coverage by earnings and cash flows despite past volatility. The company declared a SEK 6 per share dividend, reflecting an increase from the previous year, though its yield is below Sweden's top tier payers. Recent board changes and stable earnings growth bolster its position, although Q1 2025 saw decreased net income to SEK 250 million compared to the prior year.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ENXTPA:IPS ENXTPA:TEP and OM:AFRY.
