As global markets navigate through rising trade tensions and shifting economic indicators, the Euronext Amsterdam presents a unique landscape for dividend stock considerations. In this environment, understanding the resilience and potential of dividend-yielding stocks becomes particularly pertinent for investors looking to stabilize their portfolios in July 2024.

Top 5 Dividend Stocks In The Netherlands

Click here to see the full list of 7 stocks from our Top Euronext Amsterdam Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

ABN AMRO Bank

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

Overview: ABN AMRO Bank N.V. offers a range of banking and financial services to retail, private, and business clients both in the Netherlands and globally, with a market capitalization of €13.82 billion.

Operations: ABN AMRO Bank N.V. generates revenue primarily through its Corporate Banking (€3.50 billion), Personal & Business Banking (€4.07 billion), and Wealth Management (€1.59 billion) segments.

Dividend Yield: 9.1%

ABN AMRO Bank offers a 9.1% dividend yield, higher than the Dutch market average of 5.45%. Despite this, its dividend history is marked by instability and volatility over the past eight years. Dividends are currently covered by earnings with a payout ratio of 47.9%, forecasted to remain stable at 48.4% in three years. However, earnings are expected to decline annually by 11.3% over the next three years, raising concerns about sustained dividend payments amidst fluctuating profitability.

• Click to explore a detailed breakdown of our findings in ABN AMRO Bank's dividend report.

• Our expertly prepared valuation report ABN AMRO Bank implies its share price may be lower than expected.

Koninklijke Heijmans

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

Overview: Koninklijke Heijmans N.V. operates in property development, construction, and infrastructure sectors primarily in the Netherlands, with a market capitalization of approximately €654.55 million.

Operations: Koninklijke Heijmans N.V. generates revenue through its Real Estate (€411.79 million), Van Wanrooij (€124.76 million), Infrastructure Works (€800.03 million), and Construction & Technology segments (€1.08 billion).

Dividend Yield: 3.6%

Koninklijke Heijmans exhibits a dividend yield of 3.65%, which is lower than the top quartile in the Dutch market at 5.45%. Although its dividends have shown instability over the past decade, they are supported by both earnings and cash flows, with payout ratios of 37.1% and 59% respectively. The company's share price has been highly volatile recently, adding a layer of risk for dividend reliability despite reasonable coverage metrics.

• Delve into the full analysis dividend report here for a deeper understanding of Koninklijke Heijmans.

• Insights from our recent valuation report point to the potential overvaluation of Koninklijke Heijmans shares in the market.

Koninklijke KPN

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

Overview: Koninklijke KPN N.V. is a telecommunications and IT service provider in the Netherlands with a market capitalization of approximately €14.82 billion.

Operations: Koninklijke KPN N.V. generates revenue primarily through three segments: Business (€1.84 billion), Consumer (€2.93 billion), and Wholesale (€0.70 billion).

Dividend Yield: 4%

Koninklijke KPN's dividend yield stands at 3.98%, below the top quartile of Dutch dividend stocks at 5.45%. Despite a 10-year history of inconsistent dividends, recent financial strategies may bolster its position. The company's dividends are well-covered by earnings and cash flows, with payout ratios of 78.4% and 59.6% respectively, indicating sustainability from current income rather than capital reserves. Strategic expansions into 5G and a partnership in TowerCo highlight proactive steps towards growth and operational efficiency, potentially enhancing future dividend reliability despite an overall volatile track record.

• Get an in-depth perspective on Koninklijke KPN's performance by reading our dividend report here.

• Our valuation report here indicates Koninklijke KPN may be undervalued.

Summing It All Up

• Click here to access our complete index of 7 Top Euronext Amsterdam Dividend Stocks.

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Curious About Other Options?

• 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 ENXTAM:ABN ENXTAM:HEIJM and ENXTAM:KPN.

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