With interest rates around the world looking like they will stay at record low levels here are a few high dividend yield investment ideas in Europe for you to look at.
You know not all high dividend yield companies make a good investment, you have to make sure the company can continue to pay the high dividend and this is exactly what this list does.
It gives you a list of quality European companies that have an attractive dividend yield.
How the list was put together
Before I get to the list of companies first some information on how the list was selected.
This is what I screened for:
- Selected all the main markets in Europe, Scandinavia, UK and Switzerland
- Selected companies with a daily traded volume of at least €125,000 and a market value larger than €65 million (you must be able to easily buy and sell the shares).
- To ensure only quality companies are selected companies with a low gross profit margin were excluded (Gross Margin Novy Marx).
- Companies with a bad Piotroski F-Score of less than 5 (low quality companies) were excluded.
- The 40% of companies with the highest dividend yield were included.
- Only companies with financial results updated in the past six months were included
- To make sure the dividend is sustainable only companies with a high free cash flow yield and a high dividend cover ratio were included.
- I sorted the output of the screener from high to low by dividend yield.
All the ratios are fully explained on the Glossary page
This is what the screen looks like:
Click image to enlarge
Source: Quant Investing stock screener
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You can select your own criteria
The above screen is just an example and you can set your own criteria when looking for high dividend yield companies. The Quant Investing stock screener has over 110 ratios and indicators you can choose from.
16 highest dividend yield companies
Here is a list of the first 16 highest dividend yield companies the screen came up with:
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
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Attractive dividend yield of 9.8%
As you can see the dividends are quite attractive with the highest dividend yield of 9.8%, and that in spite of the quality factors (Piotroski F-Score and Dividend Coverage) I have included in the screen.
The next 16 high dividend yield companies
[Image of screen has been removed as it is out of date - Please go to our blog page for more recent investment ideas]
Please always do your fact checking
As with all screens this is just a list of companies. Please do your own analysis and fact checking to make sure the company is correctly included in the list.
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PPS It is so easy to forget and put things off why not sign up right now before you get distracted
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