Yahoo Finance Exploring Dividend Stocks On Euronext Amsterdam With ABN AMRO Bank And Two Others
Amidst a backdrop of fluctuating global markets, the Euronext Amsterdam stands out with its robust offerings, including promising dividend stocks such as ABN AMRO Bank. As investors seek stable returns in uncertain times, understanding the characteristics that define strong dividend stocks—such as consistent payout histories and solid financial health—becomes crucial.
Top 5 Dividend Stocks In The Netherlands
Name | Dividend Yield | Dividend Rating |
Acomo (ENXTAM:ACOMO) | 6.50% | ★★★★★☆ |
ABN AMRO Bank (ENXTAM:ABN) | 9.19% | ★★★★☆☆ |
Randstad (ENXTAM:RAND) | 4.56% | ★★★★☆☆ |
Koninklijke KPN (ENXTAM:KPN) | 4.36% | ★★★★☆☆ |
Koninklijke Heijmans (ENXTAM:HEIJM) | 5.03% | ★★★★☆☆ |
Let's review some notable picks from our screened stocks.
ABN AMRO Bank
Simply Wall St Dividend Rating: ★★★★☆☆
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 globally, with a market capitalization of €13.78 billion.
Operations: ABN AMRO Bank N.V. generates revenue primarily through three segments: Corporate Banking (€3.44 billion), Wealth Management (€1.61 billion), and Personal & Business Banking (€4.04 billion).
Dividend Yield: 9.2%
ABN AMRO Bank's dividend profile shows mixed signals for investors focused on income. While the dividend yield of 9.19% stands well above the Dutch market average, its history of volatile payments over a relatively short eight-year period raises concerns about reliability. The bank's dividends are currently supported by a reasonable payout ratio of 50.5%, with similar coverage expected in three years, suggesting sustainability from an earnings perspective. However, projected earnings declines averaging 9.6% annually over the next three years could pressure future payouts, highlighting potential risks in maintaining consistent dividend growth.
Koninklijke Heijmans
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Koninklijke Heijmans N.V. operates in property development, construction, and infrastructure sectors primarily in the Netherlands and abroad, with a market capitalization of approximately €474.28 million.
Operations: Koninklijke Heijmans N.V. generates revenue from several key segments, including Real Estate (€411.79 million), Van Wanrooij (€124.76 million), Infrastructure Works (€800.03 million), and Construction & Technology (€1.08 billion).
Dividend Yield: 5%
Koninklijke Heijmans reported a stable net income of €60 million for 2023, maintaining earnings despite increased sales from €1.81 billion to €2.12 billion. The company's dividend history shows instability with significant fluctuations over the past decade, although dividends are well-covered by a payout ratio of 37.1% and cash flows (59%). Recently, the stock underwent a split effective May 7, 2024, potentially affecting future dividend distributions. Trading at a value deemed 16.5% below its fair estimate, Heijmans presents both opportunities and risks for dividend-focused portfolios in the Netherlands.
Randstad
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Randstad N.V. specializes in offering solutions within the realms of work and human resources services, with a market capitalization of approximately €8.86 billion.
Operations: Randstad N.V. generates its revenue from various human resources services, although specific segment details are not provided in the text.
Dividend Yield: 4.6%
Randstad's dividend yield of 4.56% falls below the top quartile in the Dutch market, but its dividends are well-supported with a payout ratio of 73.4% and a cash payout ratio of 45.9%. Despite this, Randstad has experienced volatility and unreliability in its dividend payments over the past decade. The company's recent financial performance shows a decline, with Q1 2024 sales dropping to €5.94 billion from €6.52 billion year-over-year and net income decreasing to €88 million from €154 million. Additionally, Randstad completed significant share buybacks totaling €316.66 million by April 2024.
Summing It All Up
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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:ABNENXTAM:HEIJM and ENXTAM:RAND
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