In September 2024, the French stock market saw modest gains, with the CAC 40 Index adding 0.47%, reflecting cautious optimism among investors following the U.S. Federal Reserve's rate cut. Amid this backdrop of economic adjustments and investor sentiment shifts, dividend stocks on Euronext Paris present compelling opportunities for income-focused investors. When considering top dividend stocks, it's important to focus on companies with strong fundamentals and consistent payout histories, especially in times of economic uncertainty and fluctuating monetary policies.
Top 10 Dividend Stocks In France
Name
Dividend Yield
Dividend Rating
Vicat (ENXTPA:VCT)
5.93%
★★★★★★
Rubis (ENXTPA:RUI)
8.31%
★★★★★★
Arkema (ENXTPA:AKE)
4.43%
★★★★★☆
Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative (ENXTPA:CRLA)
Overview: Caisse Régionale de Crédit Agricole Mutuel de La Touraine et du Poitou Société Coopérative offers a range of banking products and services in France and has a market cap of €410.81 million.
Operations: Caisse Régionale de Crédit Agricole Mutuel de La Touraine et du Poitou Société Coopérative generates revenue primarily from Proximity Bank (€253.67 million) and Management for Own Account and Miscellaneous (€92.57 million).
Dividend Yield: 4.9%
Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative offers a reliable dividend, with payments growing steadily over the past 10 years. The current yield of 4.87% is slightly below the top tier in France but remains attractive due to its stability and low payout ratio of 17.9%. Despite trading at 61.5% below fair value estimates, recent financial data is outdated, which could affect future dividend sustainability assessments.
Overview: Électricite de Strasbourg Société Anonyme supplies electricity and natural gas to individuals, businesses, and local authorities in France, with a market cap of €770.71 million.
Operations: Électricite de Strasbourg Société Anonyme generates revenue primarily from its Electricity Distributor segment (€288.95 million) and the Production and Distribution of Electricity and Gas segment (€1.40 billion).
Dividend Yield: 8%
Électricité de Strasbourg Société Anonyme's dividend yield of 8% ranks in the top 25% of French dividend payers. However, its dividends are not covered by free cash flows and have been volatile over the past decade. Despite a reasonable payout ratio of 66%, high non-cash earnings raise concerns about sustainability. Trading at 52.8% below estimated fair value, recent earnings growth of 69.9% offers some optimism but does not fully mitigate the risks associated with its dividend reliability.
Overview: Samse SA distributes building materials and tools in France, with a market cap of €497.05 million.
Operations: Samse SA generates revenue from two main segments: Trading (€1.69 billion) and Do-It-Yourself (€429.36 million).
Dividend Yield: 6.9%
Samse's dividend yield of 6.9% places it in the top 25% of French dividend payers, with dividends well-covered by both earnings (44.8% payout ratio) and cash flows (28% cash payout ratio). However, the company's profit margins have declined from 4.3% to 2.3%, and recent earnings dropped significantly from €41.61 million to €8.18 million year-over-year, raising concerns about dividend sustainability despite a decade-long increase in payments.
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:CRTO ENXTPA:ELEC and ENXTPA:SAMS.
