In the wake of the U.S. Federal Reserve's recent rate cuts, European markets have shown mixed reactions, with the pan-European STOXX Europe 600 Index ending slightly lower as investor caution grew around future monetary policy. Despite this backdrop, dividend stocks on Euronext Amsterdam continue to attract attention for their potential to provide steady income streams. A good dividend stock typically combines a solid yield with a stable financial foundation and consistent payout history, making it an attractive option in uncertain market conditions like those we are currently experiencing.
Overview: ABN AMRO Bank N.V. offers a range of banking products and financial services to retail, private, and business clients both in the Netherlands and internationally, with a market cap of €13.71 billion.
Operations: ABN AMRO Bank N.V. generates its revenue from three primary segments: Corporate Banking (€3.46 billion), Wealth Management (€1.55 billion), and Personal & Business Banking (€4.02 billion).
Dividend Yield: 9.2%
ABN AMRO Bank's dividend yield is among the top 25% in the Dutch market, with a current payout ratio of 50.5%, indicating coverage by earnings. However, its dividend payments have been volatile and unreliable over the past nine years. Recent financial results showed a slight decline in net income to €1.32 billion for H1 2024. The bank's dividends are forecasted to remain covered by earnings in three years (47.1% payout ratio).
Overview: Acomo N.V. and its subsidiaries operate in sourcing, trading, processing, packaging, and distributing conventional and organic food ingredients for the global food and beverage industry with a market cap of €526.01 million.
Operations: Acomo N.V.'s revenue segments include Tea (€124.04 million), Edible Seeds (€246.52 million), Food Solutions (€23.47 million), Spices and Nuts (€445.76 million), and Organic Ingredients (€429.28 million).
Dividend Yield: 6.5%
Acomo's dividend yield of 6.48% is among the top 25% in the Dutch market, but its payments have been volatile and are not well covered by earnings, with a high payout ratio of 95.7%. Despite this, dividends are covered by cash flows with a reasonable cash payout ratio of 51%. Recent H1 2024 results showed stable sales at €668.2 million but a decline in net income to €17.94 million from €22.16 million last year.
Overview: Koninklijke Heijmans N.V. operates in property development, construction, and infrastructure sectors both in the Netherlands and internationally, with a market cap of €665.28 million.
Operations: Koninklijke Heijmans N.V. generates revenue from its Connecting segment (€871.03 million) and Segment Adjustment (€1.83 billion).
Dividend Yield: 3.6%
Koninklijke Heijmans' dividend yield of 3.59% is lower than the top 25% of Dutch dividend payers. Its dividends are well covered by earnings (payout ratio: 30%) and cash flows (cash payout ratio: 20.7%). Despite a history of volatility in dividend payments, recent H1 2024 results showed strong performance with sales rising to €1.22 billion from €937 million and net income doubling to €37 million year-over-year, indicating potential stability ahead.
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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 ENXTAM:ABN ENXTAM:ACOMO and ENXTAM:HEIJM.
