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Avoid JDE Peet's And Explore One Better Dividend Option On Euronext Amsterdam

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Investors often look to dividend stocks in the Netherlands for a reliable income stream. However, it's important to assess the sustainability of these dividends. For instance, companies like JDE Peet's may present a higher risk due to their high payout ratios, which could jeopardize their ability to maintain dividend payments in the long term.

Top 5 Dividend Stocks In The Netherlands

Name

Dividend Yield

Dividend Rating

Acomo (ENXTAM:ACOMO)

6.68%

★★★★★☆

ABN AMRO Bank (ENXTAM:ABN)

9.84%

★★★★☆☆

Randstad (ENXTAM:RAND)

5.39%

★★★★☆☆

Signify (ENXTAM:LIGHT)

6.65%

★★★★☆☆

Koninklijke Heijmans (ENXTAM:HEIJM)

4.66%

★★★★☆☆

Koninklijke KPN (ENXTAM:KPN)

4.19%

★★★★☆☆

Click here to see the full list of 6 stocks from our Top Euronext Amsterdam Dividend Stocks screener.

Here's a peek at one of the choices from the screener and one that may be safer to dodge.

Top Pick

Acomo

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Acomo N.V. operates in sourcing, trading, processing, packaging, and distributing conventional and organic food ingredients for the food and beverage industry across Europe, North America, and other international markets, with a market capitalization of approximately €510.02 million.

Operations: The company's revenue is primarily generated from Edible Seeds (€257.29 million), Spices and Nuts (€429.96 million), Organic Ingredients (€436.38 million), Tea (€120.62 million), and Food Solutions (€24.07 million).

Dividend Yield: 6.7%

ACOMO's dividend profile shows a blend of strengths and areas for caution. Over the past decade, dividends have seen growth, yet their trajectory has been marked by volatility, reflecting some instability. Currently, ACOMo maintains a payout ratio of 85.7%, ensuring dividends are well-covered by earnings. Notably, its cash payout ratio stands at 26.1%, indicating robust coverage by cash flows compared to companies with unsustainable high ratios, positioning it favorably in terms of dividend safety amidst market peers trading at significant discounts to their fair value estimates.

ENXTAM:ACOMO Dividend History as at Jul 2024
ENXTAM:ACOMO Dividend History as at Jul 2024

One To Reconsider

JDE Peet's

Simply Wall St Dividend Rating: ★★☆☆☆☆

Overview: JDE Peet's N.V. operates globally, offering a diverse range of coffee and tea products, with a market capitalization of approximately €9.04 billion.

Operations: The company's revenue is primarily derived from its Europe (including Out-of-Home) segment at €4.72 billion, followed by CPG LARMEA at €1.50 billion, Peet's contributing €1.15 billion, and CPG APAC generating €0.79 billion.