The Bank BNP Paribas yesterday published its legendary dividend book for the second half of the year.

Ten European stocks were selected and placed on a list called "Best Ideas". All of these stocks have a pretty convincing track record.

What makes a really good dividend stock for BNP? Stable distributions over at least ten years, sustainable dividend growth and a strong free cash flow. In addition, there are qualitative criteria such as reasonable payout ratios, earnings momentum and rapid price recovery after the dividend discount.

Aegon
$AGN (+0,64%) is a Dutch insurer with a focus on the US market. Dividend yield: 6.8 percent. Added to this is the fantasy of possible deals and greater capital efficiency.

Arkema
$AKE (-0,12%) is a French specialty chemicals group with a yield of 5.7 percent. It is a spin-off from the chemicals business of the oil company Total. Arkema is one of the leading suppliers of highly developed materials.

Bankinter $BKT (-0,06%) is a top Spanish address for wealthy clients. The bank has a solid balance sheet and offers a yield of 5.1 percent - although business is being held back slightly by the prospect of falling key interest rates.

Aéroports de Paris
$ADP (-0,21%) is - as the name suggests - the operator of the Paris airports. Here, investors receive a yield of 3.4 percent, and there is also great rebound potential due to growing air traffic and an exciting investment in GMR in India.

Inditex
$ITX (+0,28%) is the Zara-parent company. The company impresses with a 3.6% return, but above all with a strong cash flow thanks to falling logistics costs and global expansion.

Intesa Sanpaolo
$ISP (+0,94%) is Italy's largest financial institution and offers a 7.9 percent dividend. A large part of its success comes from stable segments such as asset management.

Munich Re
$MUV2 (+0,02%) is one of the stocks from Germany. The reinsurance classic offers investors a yield of 4.2 percent. The company has an enormously strong balance sheet and is a real all-purpose portfolio weapon.

National Grid
$NG. (+0%) is an electricity and gas provider from the UK that pays a dividend of 4.5 percent. The company is strong on the energy transition and is well hedged against inflation.

Publicis
$PUB (-0,84%) is France's advertising giant with data-driven advertising and pays a dividend of 3.9 percent. The company is also strongly positioned in the field of artificial intelligence.

The last stock to round off Volkswagen
$VOW (+0%) rounds off the list. The car manufacturer offers a full six percent yield. The partnership with Rivian
$RIVN (-0,1%) is also beginning to generate imagination.

All ten stocks combine above-average dividend yields with reasonable valuations. The average price/earnings ratio (P/E) is around 10, and all companies are well capitalized.

BNP speaks of a "quality-driven dividend portfolio" - so it's not about bargain hunting. For those who prefer a broader approach, there is of course also the dividend ETF Amundi MSCI Europe High Dividend Factor ETF EUR $CD9 (+0,31%)

Source & picture: "Welt", 02.07.25