Dividend-paying stocks that combine healthy balance sheets with hefty yields can provide investors with steady incomes, cushion against market downturns, and grow investments at a healthy clip.
In January 2025, the top-performing dividend-payers included German agricultural inputs company K+S SDF, Italian heavy machinery company Iveco Group IVG, and German advertising agency Ströer SAX.
To find the month’s 10 best-performing income-focused stocks, we screened the Morningstar Eurozone Index—which measures the performance of the eurozone’s broad regional markets, targeting the top 97% of stocks by market capitalization—for companies with a forward dividend yield of at least 1.5%, excluding real estate investment trusts.
The Best-Performing Eurozone Dividend Stocks of January 2025
1. K+S SDF
2. Iveco Group IVG
3. Ströer SAX
4. Verallia VRLA
5. Thyssenkrupp TKA
6. Banco Sabadell SAB
7. Orion ORNAV
8. Moncler MONC
9. Strabag STR
10. Commerzbank CBK
How Have Dividend Stocks Performed?
The Morningstar Eurozone Dividend Yield Focus Index, which tracks the performance of high-quality, dividend-paying stocks listed in Europe, rose 5.7% over the past month and 12.0% over the past year.
The overall eurozone stock market, as measured by the Morningstar Eurozone Index, has gained 7.1% on the month and 15.4% on the year.
Yields and Metrics for January’s Best-Performing Dividend Stocks
K+S
German agricultural inputs company K+S rose 28.3% in January and gained 8.0% over the past 12 months. Trading at EUR 13.45 per share, its stock has a forward dividend yield of 5.21%. K+S pays investors a trailing 12-month dividend of EUR 0.70 per share. The stock has a quantitative Morningstar Rating of 5 stars.
Iveco Group
Italian heavy machinery company Iveco Group rose 26.6% in January and gained 21.5% over the past 12 months. At EUR 11.56 per share, its stock has a forward dividend yield of 1.9% and a trailing 12-month dividend of EUR 0.22 per share. It has a quantitative Morningstar Rating of 5 stars.
Ströer
German advertising agency Ströer gained 23.9% in January and rose 8.2% over the past 12 months. The stock’s EUR 57 price gives it a forward dividend yield of 3.25%. Ströer pays investors a trailing 12-month dividend of EUR 1.85 per share. The stock has a quantitative Morningstar Rating of 4 stars.
Verallia
French packaging and containers company Verallia rose 22.7% in January and lost 2.6% over the past 12 months. Trading at EUR 28.74 per share, Verallia stock has a forward dividend yield of 7.48% and a trailing 12-month dividend of EUR 2.15 per share. It has a quantitative Morningstar Rating of 3 stars.
Thyssenkrupp
German conglomerate Thyssenkrupp gained 22.5% in January and fell 14.0% over the past 12 months. Trading at EUR 4.53 per share, its forward dividend yield is 3.31%. Thyssenkrupp pays investors a trailing 12-month dividend of EUR 0.15 per share. It has a quantitative Morningstar Rating of 3 stars.
Banco Sabadell
Spanish diversified bank Banco Sabadell gained 21.4% in January and rose 98.0% over the past 12 months. At EUR 2.27 per share, Banco Sabadell stock has a forward dividend yield of 7.19% and a trailing 12-month dividend of EUR 0.14 per share. It has a quantitative Morningstar Rating of 3 stars.
Orion
Finnish drug manufacturer Orion rose 21.1% in January and gained 26.4% over the past 12 months. Trading at EUR 51 per share, Orion stock has a forward dividend yield of 3.12% and a trailing 12-month dividend of EUR 0.81 per share. It has a quantitative Morningstar Rating of 3 stars.
Moncler
Italian apparel manufacturing company Moncler rose 20.2% in January and gained 9.0% over the past 12 months. Trading at EUR 61 per share, Moncler stock has a forward dividend yield of 1.89% and pays investors a trailing 12-month dividend of EUR 1.15 per share. The stock, which has a narrow economic moat, is currently trading at a 28% premium to its fair value estimate of EUR 47.50 per share, leaving it moderately overvalued, leaving it with a Morningstar Rating of 2 stars.
Strabag
Austrian engineering and construction company Strabag gained 19.5% in January and rose 33.3% over the past 12 months. The stock’s EUR 45.85 price gives it a forward dividend yield of 4.8%. Strabag pays investors a trailing 12-month dividend of EUR 2.20 per share. The stock has a quantitative Morningstar Rating of 3 stars.
Commerzbank
German regional bank Commerzbank rose 18.8% in January and gained 78.2% over the past 12 months. At EUR 18.45 per share, Commerzbank has a forward dividend yield of 3.52% and a trailing 12-month dividend of EUR 0.35 per share. The stock, which has no economic moat, is trading near its fair value estimate of EUR 19.60 per share. It has a Morningstar Rating of 3 stars.
What Is the Morningstar Eurozone Index?
The Morningstar Eurozone Index measures the performance of the eurozone’s broad regional markets, targeting the top 97% of stocks by market capitalisation. The index does not incorporate environmental, social, or governance criteria.
What Is the Morningstar Eurozone Dividend Yield Focus Index?
The Morningstar Eurozone Dividend Yield Focus Index captures the performance of a portfolio of high-quality, dividend-paying securities.
It’s a subset of the Morningstar Eurozone index (which represents 97% of the equity market capitalization) that includes only stocks that pay dividends. The stocks are screened for economic moat and financial strength compared to others in their sector. Real estate investment trusts are excluded.
From there, the 25 highest-yielding stocks are included in the index, weighted by the dollar value of the dividends. See the full rulebook here.
The Best Dividend Stock Leaders: More Ideas to Consider
Investors who would like to uncover more top-performing or cheap dividend stocks to research further can do the following:
• Review the full list of Dividend stocks included in the Morningstar Eurozone Dividend Yield Focus index. Those dividend stocks with Morningstar Ratings of 4 or 5 stars are undervalued, according to our metrics.
• Read our monthly analysis of the latest dividend moves among the top FTSE 100 dividend payers.
• Use our Morningstar Screener tool to find the best dividend stocks according to your specific criteria. You can search for stocks based on their dividend yields, valuation measures such as price/earnings, and more.
• Use Morningstar Portfolio Manager to build a watchlist of the best dividend stocks and create a view that allows you to easily follow the valuations, ratings, and dividend yields of the stocks in your list.
• When it comes to buying stocks, it’s more than just dividends. Read here how valuations and competitive advantages—known as economic moats—matter when it comes to a stock’s potential for outperformance.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
Companies that are not formally covered by a Morningstar analyst are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative star rating.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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