5 Best European Dividend Stocks to Buy Now

In this article, we discuss 5 best European dividend stocks to buy now. If you want to read our detailed analysis of European dividend stocks and their returns, go directly to read 10 Best European Dividend Stocks to Buy Now. 

5. TotalEnergies SE (NYSE:TTE)

Dividend Yield as of October 22: 3.81%

TotalEnergies SE (NYSE:TTE) is a French multinational energy and petroleum company and is one of the major oil companies in the country. In September, the company announced the adoption of its cash flow allocation strategy for the coming years. The strategy states that 35% to 40% of the company’s cash flow will be distributed among shareholders while maintaining its transformation plans with annual net investments amounting to $14 billion to $18 billion between 2022 to 2025.

TotalEnergies SE (NYSE:TTE) currently pays an interim dividend of €0.69 per share with a dividend yield of 3.81%, as of October 22. On September 28, the company also announced a special interim dividend of €1.00 per share, which makes the company one of the best dividend stocks on our list. In Q2 2022, it generated over $13.2 billion in cash flow and $4.5 billion in free cash flow, which shows that the company has sufficient cash to support its dividends.

In October, JPMorgan raised its price target on TotalEnergies SE (NYSE:TTE) to €66 with an Overweight rating on the shares, appreciating the company’s free cash flow outlook.

Of the 895 elite funds tracked by Insider Monkey, 20 hedge funds reported a bullish stance on TotalEnergies SE (NYSE:TTE) in Q2 2022, the same as in the previous quarter. The stakes owned by these hedge funds have a total value of over $1.88 billion. Arrowstreet Capital is one of the company’s main stakeholders in Q2.

Artisan Partners mentioned TotalEnergies SE (NYSE:TTE) in its Q2 2022 investor letter. Here is what the firm has to say:

“We added one new position this quarter, TotalEnergies SE (NYSE:TTE). TTE is one of the world’s largest energy companies. It develops and produces oil and gas, produces and sells refined products, is one of the largest producers and traders of LNG, and owns a large portfolio of renewable power generating assets. TTE has one of the lowest cost portfolios of oil and gas assets and therefore one of the lowest breakeven points in the industry. It also has one of the best balance sheets in the industry. We estimate it will reach a net cash position sometime in 2023. (Click here to view the full text).