5 Best European Dividend Stocks to Buy Now

1. British American Tobacco p.l.c. (NYSE:BTI)

Dividend Yield as of October 22: 7.51%

British American Tobacco p.l.c. (NYSE:BTI) is a manufacturer of tobacco and related products with headquarters in London. On September 28, the company announced a quarterly dividend of $0.7404 per share, in line with its previous dividend. It maintains a 23-year streak of consistent dividend growth, which qualifies it as one of the best dividend stocks on our list. As of October 22, the stock’s dividend yield came in at 7.51%.

In August, Barclays lifted its price target on the stock to 4,500 GBP and maintained an Overweight rating on the shares.

In the first six months of 2022, British American Tobacco p.l.c. (NYSE:BTI) reported an operating cash flow of £3.2 billion, up 42.9% from the same period last year. Its free cash flow for the first six months grew to £2.3 billion, from £1.2 billion in the prior-year period. Year-to-date, the company returned £3.8 billion to shareholders, £2.5 billion of which accounted for dividend payments.

According to Insider Monkey’s data, 17 hedge funds owned investments in British American Tobacco p.l.c. (NYSE:BTI) in Q2 2022, down from 19 in the previous quarter. These investments are worth over $2.3 billion.

Distillate Capital Partners LLC mentioned British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter. Here is what the firm has to say:

“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”

You can also take a look at 11 Best Income Stocks to Buy Right Now and 13 Best Long-Term Dividend Stocks to Buy Now

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