As European markets face renewed fears about global economic growth, the pan-European STOXX Europe 600 Index has seen a notable decline. Amid this backdrop, dividend stocks on Euronext Amsterdam offer an appealing option for investors seeking steady income streams. In times of market uncertainty, dividend-paying stocks can provide a reliable source of income and potential stability.
Overview: ABN AMRO Bank N.V. offers a range of banking products and financial services to retail, private, and business clients both in the Netherlands and internationally, with a market cap of €12.72 billion.
Operations: ABN AMRO Bank N.V.'s revenue segments include Corporate Banking (€3.46 billion), Wealth Management (€1.55 billion), and Personal & Business Banking (€4.02 billion).
Dividend Yield: 9.9%
ABN AMRO Bank's dividend payments, while currently covered by earnings with a 50.5% payout ratio, have been volatile over the past nine years. Recent interim dividends were set at €0.60 per share, totaling €500 million. Despite trading at good value compared to peers and industry, the bank has faced declining net income and earnings per share in recent reports. Additionally, executive changes may impact future stability and strategic direction for dividend sustainability.
Overview: Acomo N.V. operates in sourcing, trading, processing, packaging, and distributing conventional and organic food ingredients for the food and beverage industry across the Netherlands, Europe, North America, and internationally with a market cap of €509.43 million.
Operations: Acomo N.V. generates revenue through various segments including Tea (€124.04 million), Edible Seeds (€246.52 million), Food Solutions (€23.47 million), Spices and Nuts (€445.76 million), and Organic Ingredients (€429.28 million).
Dividend Yield: 6.7%
Acomo N.V.'s H1 2024 earnings showed stable sales at €668.2 million but a decline in net income to €17.94 million from €22.16 million last year, with EPS dropping to €0.61 from €0.75. Despite a high dividend yield of 6.69%, the payout ratio is unsustainable at 95.7%, and dividends are not well covered by earnings, though they are supported by cash flows (51% cash payout ratio). Dividend payments have been volatile over the past decade, reflecting financial instability despite a favorable P/E ratio of 14.3x compared to the market's 16.1x.
Overview: ING Groep N.V. offers a range of banking products and services across the Netherlands, Belgium, Germany, the rest of Europe, and internationally with a market cap of €50.70 billion.
Operations: ING Groep N.V.'s revenue segments include €4.97 billion from Retail Banking Netherlands, €2.61 billion from Retail Banking Belgium, €2.97 billion from Retail Banking Germany, €6.69 billion from Wholesale Banking, and €334 million from the Corporate Line segment.
Dividend Yield: 6.9%
ING Groep's dividend stability is questionable, given its volatile payments over the past 9 years. Despite a reasonable payout ratio of 69.8%, recent financial performance shows declining net interest income and net income for H1 2024. The company has completed significant share buybacks totaling €4.07 billion, indicating strong capital management but also reflecting fluctuating earnings. ING's interim dividend of €0.35 per share aligns with its policy, yet future sustainability remains uncertain due to inconsistent historical payouts and earnings volatility.
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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 ENXTAM:ABN ENXTAM:ACOMO and ENXTAM:INGA.
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