Europe’s Biggest Dividend Increases and Surprises of 2025
From record hikes at Kongsberg and Rheinmetall to surprising dividend growth at Hannover Re – discover the trends and opportunities for dividend investors.
With all annual reports in, the European ex-dividend season is set to start in full force by the end of March. April and May will see the majority of European stocks going ex-dividend, as most companies in the region distribute dividends once per year. Some companies pay twice a year, while quarterly dividends remain rare.
Main Topics to Look Out For in this post:
🚀 Record Dividend Hikes in Europe in 2025
💥 Unexpected Dividend Surprises
⏳ Early Movers in the Dividend Calendar
🔥 Sector-Wise Dividend Trends
🛡️ Explosive Growth in the Defense Sector
🚗 Mixed Signals from the Automotive Industry
💊 Stability Among Pharmaceutical Giants
📈 Consistent Dividend Growth in Insurance
2025 is shaping up to be an exciting year for dividend investors in Europe. With record-breaking hikes like Kongsberg’s 43% increase and an unexpected 17% growth at Hannover Re, there are plenty of opportunities for those seeking reliable income.
While major names like Munich Re are grabbing attention, it's clear that smaller companies are also delivering strong performances, especially when it comes to dividend increases. In this update, we dive into the key dividend changes for this year, highlighting the most notable early movers, surprises in the pharmaceutical sector, and the leaders in insurance and defense. Keep reading to uncover where the opportunities lie for yield-focused investors!
Notable Dividend Adjustments in Europe for 2025
Early Movers in the Dividend Calendar (based on ex-date)
Sika (March 27) kicks off the dividend season for dividend-focused portfolios. This Swiss company specializes in construction chemicals and is known for its strong dividend growth track record.
Ebro Foods (March 28): One of our Focus stocks in 2024, going ex-dividend for €0.23 per share; current dividend yield at 4.1%. Stock is up +6% YTD at €16.82.
Novo Nordisk (March 28): Ex-dividend for DKK 7.90 per share; yield now 2.2% at DKK 502. The stock is down nearly 20% in 2025 and is no longer Europe's largest company—our Focus Stock SAP, tipped in 2024, now holds that position.
Roche (March 27): The Swiss pharma giant has a yield of 3.2%. Roche is a Dividend Aristocrat with more than 25 consecutive years of increased dividends, just like Novo Nordisk. Novo is one of the European Dividend Heroes for many years now.
Randstad (March 28): The Dutch employment services giant trades ex-dividend with a yield of 4%, though the dividend has been reduced by 29% in 2025.
ABB (March 31, CH): Another Swiss company trading ex-dividend within a couple of days with a yield of 1.8% and a strong dividend growth track record.
Biggest Dividend Increases/Surprises
Kongsberg: Our recent Focus Stock, Kongsberg, increases its dividend by 43% this year to NOK 10 per share and announces a special dividend of NOK 12. Yield now 1.4%. The stock is up +24% YTD, reaching an all-time high today at NOK 1587. Kongsberg was our Focus stock just last month when it traded at NOK 1153.
Munich Re: Increases its dividend by 33.3% to a new record, with a yield of 3.4% at a share price of €588. The stock is up +20% YTD. Munich Re was highlighted several times on dividendhike.com because of its crazy dividend growth track record.
Hannover Re: Everyone’s talking about Munich Re, but Hannover Re, a smaller German reinsurance company (market cap €33 billion vs. €78 billion for Munich Re), is also performing excellently. The stock has reached an all-time high, up +15% this year. Hannover Re announced a €9 dividend (up from €7.20 last year), a 17% increase. The regular dividend is €7, with an additional
special dividend of €2 (up from €1.20 special last year). The regular dividend will continue to increase until 2026. Dividend yield stands at 3.3%, and the price-to-earnings ratio (P/E) is 13. The company has built a strong track record with four consecutive years of double-digit growth in dividends, including special dividends.
Germany in Focus
Henkel: First increase in five years (+10%), back on the dividend radar. Known for adhesives and consumer goods.
Beiersdorf: After a +43% increase in 2024, dividend is flat in 2025. Owns skincare brands like Nivea.
Volkswagen: First cut in eight years (-30%), reflecting a decade-long underperformance despite a +22% stock rise YTD. Major global car manufacturer.
Adidas: +186% to €2.00, though still below its 2021 level of €3.30. Sportswear giant.
Rheinmetall: +42%. German defense and automotive supplier (see below for more on this company).
Leifheit: Consumer products maker raising its annual dividend from €0.95 to €1.15, plus a €0.05 special dividend in 2025. Ex-date May 29, with a 6.9% yield.
Automotive Sector: Mixed Signals
Stellantis: -56% to €0.68 (6% yield). Parent company of Fiat, Peugeot, and Jeep.
Mercedes: -18% to €4.30. Luxury carmaker.
BMW: After a 29% dividend cut to €6.00 per share in 2024 the premium automotive brand will again cut its dividend in 2025 with a €4.30 per share dividend. The yield drops to 5.3% and the ex-date is May 15.
Renault: +19% to €2.20, following a massive +640% hike in 2024. French car manufacturer.
Ferrari: +22% to €2.986, marking its fourth consecutive year of double-digit growth. High-end sports cars.
Pharmaceutical Giants: Stability with Some Standouts
Novartis: +6%, continuing its 31-year dividend growth streak. Swiss pharma giant.
Roche: A weak +1% increase, marking a decade of minimal growth. Specializes in oncology and diagnostics.
Sanofi: +4.3%, extending a 30+ year streak. French pharmaceutical leader.
Novo Nordisk: +21.3% in 2024, following massive increases in previous years, largely due to GLP-1 weight loss drugs. Leader in diabetes and obesity treatments.
Insurance: Consistent Growth
Allianz: +11.6% to €15.40, nearing 20 years of consecutive increases. Germany’s largest insurer.
Munich Re: +33%, following a similar increase last year. Reinsurance giant.
AXA: Fifth consecutive annual increase (+9%). French insurance multinational.
Hannover Re: +17% to €9.00, maintaining a strong track record. Major reinsurance player.
Biggest Dividend Cuts of 2025
Kering: -71%. Luxury fashion house (Gucci, Balenciaga).
Nibe Industrier: -54%, breaking a nearly 30-year streak of increases. Swedish heating technology company.
Umicore: -37.5%, first cut in over 20 years. Belgian materials technology firm.
BASF: -34% from €3.40 to €2.25 per share, first cut in 14 years. BASF is the largest chemical producer in the world.
Swatch: -31%. Swiss watchmaker (Omega, Longines, Swatch).
We highlighted both Nibe and Kering in a post about ´lagging European dividend beauties´.
While the Kering dividend cut was widely anticipated by analysts, the Nibe dividend cut came as a major surprise—especially given the company’s strong awareness of its unique 30+ year track record without a single reduction. Nibe's challenges have intensified as the market for heat pumps and solar energy has deteriorated at an accelerated pace, particularly in Europe. The broader green transition in both Europe and the U.S. has faced significant setbacks, with dwindling investments and weaker demand for sustainable technologies, ultimately impacting Nibe’s sales.
Defense Stocks: Rapid Growth in Dividends and Share Prices
Rheinmetall: Dividend +42% to €8.10, with share price surging over 100% for the fourth consecutive year. The double digit dividend growth rate streak continues for Rheinmetall but with the stock price exploding, the dividend yield is low with just 0.6%.
Thales: Dividend at a record €3.70, stock up more than 250% since 2020. The French defense and aerospace company did however cut its dividend by skipping the final dividend payment during the covid pandemic.
Hensoldt: Dividend has quadrupled since 2021, with stock up almost 400%. Hensoldt is a German defense electronics specialist that only started paying a dividend a couple of years ago.
With European dividend announcements largely complete, the trends are clear: insurance and defense stocks are booming, automotive is struggling, and a few big names have broken long-standing streaks. As the ex-dividend flow accelerates, the coming months will be critical for yield-focused investors.
Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.