European Dividend Stocks To Watch In May 2026
May 17, 2026
With European markets recently experiencing a dip, as evidenced by the pan-European STOXX Europe 600 Index’s decline of 0.85%, investors are keenly observing how geopolitical tensions and rising energy costs might influence inflation and interest rates across the region. Amidst these challenges, dividend stocks often attract attention for their potential to provide steady income streams; this is especially pertinent in times of economic uncertainty when reliable returns become increasingly valued.
Top 10 Dividend Stocks In Europe
|
Name |
Dividend Yield |
Dividend Rating |
|
Zurich Insurance Group (SWX:ZURN) |
4.31% |
★★★★★★ |
|
Zinzino (OM:ZZ B) |
4.63% |
★★★★★★ |
|
Teleperformance (ENXTPA:TEP) |
6.46% |
★★★★★★ |
|
Telekom Austria (WBAG:TKA) |
4.20% |
★★★★★☆ |
|
Swiss Re (SWX:SREN) |
5.18% |
★★★★★★ |
|
Rubis (ENXTPA:RUI) |
5.95% |
★★★★★★ |
|
Hannover Rück (XTRA:HNR1) |
5.27% |
★★★★★★ |
|
DKSH Holding (SWX:DKSH) |
4.09% |
★★★★★★ |
|
Cembra Money Bank (SWX:CMBN) |
4.52% |
★★★★★★ |
|
Banque Cantonale Vaudoise (SWX:BCVN) |
3.81% |
★★★★★★ |
Click here to see the full list of 203 stocks from our Top European Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Simply Wall St Dividend Rating: ★★★★★☆
Overview: F.I.L.A. – Fabbrica Italiana Lapis ed Affini S.p.A. is an Italian company specializing in the production and distribution of art materials and writing instruments, with a market cap of approximately €460.63 million.
Operations: F.I.L.A. – Fabbrica Italiana Lapis ed Affini S.p.A. generates its revenue primarily from the sale of art materials and writing instruments.
Dividend Yield: 8.8%
F.I.L.A. offers an attractive dividend yield of 8.83%, placing it in the top quartile of Italian dividend payers, though its dividends have been volatile over the past decade. Despite a low payout ratio of 30.3%, indicating earnings cover dividends well, cash flow coverage is tighter at 87.7%. Recent earnings show a net income improvement to €2.14 million for Q1 2026, yet overall sales have declined year-on-year, reflecting potential challenges ahead for sustained dividend growth.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Toyota Caetano Portugal, S.A. is involved in the importation, assembly, and commercialization of light and heavy vehicles with a market cap of €262.50 million.
Operations: Toyota Caetano Portugal, S.A. generates its revenue through the importation, assembly, and sale of both light and heavy vehicles.
Dividend Yield: 4.7%
Toyota Caetano Portugal’s dividend yield of 4.67% ranks in the top quartile among Portuguese dividend payers, yet its dividends have been historically volatile and not well covered by free cash flows. Despite a reasonable payout ratio of 50.5%, earnings coverage is insufficient for long-term sustainability. Recent earnings show modest revenue growth to €708.09 million for 2025, but net income declined to €25.08 million, highlighting potential challenges in maintaining stable dividend payments amidst market volatility and strategic expansions like the XPENG import agreement in Romania.
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Rejlers AB (publ) provides engineering consultancy services in Sweden, Finland, Norway, and Abu Dhabi with a market cap of SEK3.46 billion.
Operations: Rejlers AB (publ) generates revenue through its engineering consultancy services across Sweden, Finland, Norway, and Abu Dhabi.
Dividend Yield: 3.5%
Rejlers’ dividend yield of 3.46% is below the top quartile in Sweden, but dividends are covered by earnings and cash flows, with payout ratios of 66.1% and 40%, respectively. Despite a history of volatility, recent projects like the VA SYD’s MAXIMA programme and Swedish Transport Administration agreements bolster its position in sustainable infrastructure sectors. However, Q1 net income decreased to SEK 48.8 million from SEK 65.4 million last year, potentially impacting future dividend stability.
Next Steps
-
Gain an insight into the universe of 203 Top European Dividend Stocks by clicking here.
-
Have you diversified into these companies? Leverage the power of Simply Wall St’s portfolio to keep a close eye on market movements affecting your investments.
-
Join a community of smart investors by using Simply Wall St. It’s free and delivers expert-level analysis on worldwide markets.
Contemplating Other Strategies?
-
Explore high-performing small cap companies that haven’t yet garnered significant analyst attention.
-
Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
-
Find companies with promising cash flow potential yet trading below their fair value.
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 BIT:FILA ENXTLS:SCT and OM:REJL B.
This article was originally published by Simply Wall St.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Terms and Privacy Policy
Search
RECENT PRESS RELEASES
Related Post
