3 European Dividend Stocks To Watch With Up To 5.8% Yield

As European markets navigate mixed performances, with the STOXX Europe 600 Index ending slightly lower and varied results across major indices like Germany’s DAX and France’s CAC 40, investors are keenly observing dividend stocks for their potential to offer stable returns amid economic uncertainties. In light of the European Central Bank’s cautious stance on interest rates and ongoing discussions about economic resilience, a good dividend stock may be characterized by its ability to provide consistent yields while maintaining financial stability in fluctuating market conditions.

Click here to see the full list of 207 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: Credito Emiliano S.p.A., along with its subsidiaries, operates in commercial banking and wealth management in Italy, with a market cap of €5.19 billion.

Operations: Credito Emiliano S.p.A.’s revenue is primarily derived from its commercial banking segment, contributing €1.23 billion, and private banking activities, which generate €286.60 million.

Dividend Yield: 4.9%

Credito Emiliano’s dividend is well-covered by earnings, with a payout ratio of 38.2%, and is forecasted to remain sustainable at 52.5% in three years. Despite past volatility in dividend payments, the current yield of 4.93% places it among the top Italian dividend payers. Recent strategic collaborations with Google Cloud aim to enhance productivity and innovation, potentially supporting long-term financial stability despite an anticipated decline in earnings over the next few years.

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

Overview: Sodexo S.A. offers food services and facilities management across North America, Europe, and internationally with a market cap of €6.78 billion.

Operations: Sodexo S.A. generates revenue from its operations with €8.59 billion in Europe, €11.18 billion in North America, and €4.30 billion from the rest of the world.

Dividend Yield: 5.8%

Sodexo’s dividend of €2.70 per share, approved on December 16, 2025, aligns with its policy of a 50% payout ratio based on underlying net income. Despite past volatility in dividend payments, the current yield is among the top French market payers. The company’s dividends are well-covered by earnings and cash flows with payout ratios of 56.7% and 62.4%, respectively. Recent leadership changes aim to drive growth in its key U.S. market, potentially enhancing future stability.

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

Overview: Duni AB (publ) develops, manufactures, and sells meal serving, take-away, and packaging products in Sweden, Poland, and internationally with a market cap of SEK4.78 billion.

Operations: Duni AB’s revenue is primarily derived from its Dining solutions segment, which contributes SEK4.73 billion, and its Food packaging solutions segment, contributing SEK3.09 billion.

Dividend Yield: 4.9%

Duni’s dividend yield of 4.91% places it in the top 25% of Swedish market payers, supported by a payout ratio of 71.9% from earnings and 69.7% from cash flows, indicating coverage by both metrics. However, dividend reliability remains an issue due to historical volatility despite growth over the past decade. Recent product innovations like Octaview and Duniform® solutions aim to enhance sustainability and operational efficiency, potentially supporting long-term profitability amidst fluctuating dividends.

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:CE ENXTPA:SW and OM:DUNI.

This article was originally published by Simply Wall St.

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