Three of the top five yielding equity markets in Europe are outside the Eurozone, according to the Euromoney EMIX Europe Index, a new benchmark index representing large and small companies in Europe (including the UK).
Norway tops the rankings with an impressive dividend yield of 4.82%, the UK ranks third yielding 3.85% and Sweden takes the fifth position with a yield of 3.44%.
Norway has also exhibited the most impressive growth in dividend yield over the last three years, up by 14.04%.
Norway provides three of the top 10 yielding investible stocks in Europe. While the country is a large hydrocarbon producer the yields are being generated across a number of industries. The top payers for Norway are Seadrill (energy), Gjensidige Forskir (insurance) and Marine Harvest (food).
Yields in Spain are being generated predominantly in the energy, utilities and financial sectors, and in the UK by financials, utilities and the food retail (supermarkets) sectors.
Across Europe the highest yielding sectors are energy (5.20%), utilities (4.86%) and food retailers (4.19%).
Sui Chung, managing director of Euromoney Indices, says: “The current low interest rate environment has focused investors’ attention sharply on identifying equities with an attractive dividend yield. Our analysis shows that these opportunities are not always found in the most obvious sectors or countries. The sustainability of dividend payouts is also important to consider, for example time will tell how the problems being experienced by supermarkets will affect their dividend payout ranking in the months to come.”