Monday, January 6, 2014

Help me look for European companies which pay quarterly dividends!

Right now the most of my income comes from US dollars which makes it volatile due to changing EUR.USD-rates. I would like to diversify my dividend income stream between companies listed in Europe and USA. Maybe in the future I can add other currencies as well (UK or CHF, to be able to purchase GlaxoKlineSmith or Nestle). Of course the most important thing is that I want to invest in great companies with solid business fundamentals, good history of earnings and dividends and shareholder friendly management.


Another criterion is that I want quarterly dividend payments, or at least semi-annual dividend payments. It seems however that most companies in Europe pay dividends once per year. Although this isn't a huge problem, it's more rewarding to receive 4 smaller payments (1 each 90 days) per year.

My last criterion is that I don't want to pay (high) purchase fees or annual management fees. I know that there are some ETF's which pay regular distributions but I don't prefer to invest this way. The only thing I want to pay for is my purchase commission for my broker.

So therefore I started searching for Euro-listed companies who are frequent dividend payers. Currently my list looks as follows: (the links will take you to the Investor sections on their websites).

Royal Dutch Shell and Total SA are both major energy companies. Since I only have exposure in this sector through Exxon I don't mind investing in either one. I do need to compare both companies on their business fundamentals and dividend history.

Atrium is a REIT and a owner-operator and developer of shopping centers in Central and Eastern Europe. Atrium specializes in hypermarket- and supermarket-anchored malls in strong locations across the region. Atrium currently yields around 5% but I haven't checked out their financials yet. However, I am not sure if I would like to invest in real-estate in Eastern Europe. I know of some issues with fraud and corruption on those areas, so I have my doubts.

Obviously this list is rather small compared to the monthly CCC-list by David Fish. So can you add to my list and help me search for regular paying dividend companies (with great fundamentals) and listed on Euro-based stock markets? Thanks for your ideas!

10 comments:

  1. I read the title of the article and thought of four right away but you mentioned all four already so I'll just wait and see if anyone has any other ideas.

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    1. Yeah, I see some comments already so I am happy! :)

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  2. BBL, VOD, BP, ESV off the top of my head that I own

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    1. Hi AllAboutInterst, thanks for taking time to comment. I am wondering though: these companies are UK-stock, right? So they trade in English pounds. Because of dividend reinvestment and forex-costs I would like to focus on EUR and USD-listed companies.

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  3. Have a look at the portfolios from bloggers Dividenden-Sammler and Dividend Hawk - they have holdings in European markets

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    1. Thanks for referring me. I contacted Dividend Hawk for some more info. It seems that most of the stocks in his portfolio are paying dividends once per year :(

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  4. You are right most european stock pay quaterly dividends. But you can also consider to buy ETFs. They are holding european stocks and paying quaterly dividends. My favorite in the moment is here iShares STOXX Europe 600 Utilities with a dividend yield of 6%!!

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  5. Hey Marco, thanks for your tip. I looked at your suggestion and also the iShares STOXX Europe Select Dividend 30 ETF. However, I have two problems with these funds.

    1) they charge around 0.4-0.5% annual management fee which in my opinion disqualifies it as a viable long-term option.
    2) the quarterly payments vary each time which makes them less interesting as income producing assets

    So I am still not done finding the true EUR-listed DGR type of stocks ;)

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  6. BBL and RDS.A are 2 names that I own and think both are attractively valued now.

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  7. It varies company to company that when they are announcing dividend. You need to check dividend portal where you can get alert about latest dividend announcement. I also have an online portal that provides me information about how to get best UK dividend, FTSE dividend and announcement about new released dividend.

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