Six top dividend growth stocks from Europe
Twenty+ years of dividend increases with double digit annual growth
In this post, we highlight six premier European dividend stocks that have not only raised their dividends for at least 20 consecutive years but have done so with double-digit growth; specifically, we are targeting companies delivering a minimum increase of 10% this year. The best thing? Most of these six top dividend growth stocks from Europe are down by double digits in 2025 year-to-date!
Our 6 Picks come from Ireland, Denmark, the United Kingdom, Belgium, Sweden and Norway and 3 of them are European Dividend Heroes!
This results in an outstanding selection of stocks — the true "Parker Hannifins PH 0.00%↑ of Europe" — combining an exceptional dividend track record with robust, sustained dividend growth. Let dive into our 6 Top Dividend Growth stocks from Europe, starting with Vitec from Sweden.
1. Vitec Software Group
What they do: Vitec Software Group is a Swedish software company that provides software solutions for specific markets, such as real estate, finance, and healthcare. They offer both cloud-based and on-premise solutions. Vitec operates through six business areas offering software for property managers, media companies, energy and utility companies, banks and insurance companies. Subsidiaries include Futursoft OY, AutoData Norge AS, Tietomitta OY, Aloc A/S, Norwegian Fox Publish AS, Norwegian Insurance Computer Environment AS (Nice AS) and MV-Nordic A/S.
History: Founded in 1985, Vitec Software Group has grown through acquisitions of various software companies, expanding its reach in specialized markets.
Competitors: IFS AB, EPiServer, Visma.
Website: https://www.vitecsoftware.com/en/
Vitec is a fast-growing software company with a market cap of $1.8 billion. The company is set to achieve SEK 3.4 billion in revenue in 2024, reflecting a strong growth of 23.3%. With a forward P/E of 35, Vitec showcases both strong financial performance and impressive growth potential moving forward.
Vitec has increased its dividend for over 2 decades (see the table at the bottom of this article for the exact details and statistics on Vitec’s dividend and the other five stocks in this article). This year, the dividend is increased by 20%, amounting to SEK 3.60 per share.
What makes Vitec unique is that they pay dividends quarterly, which is quite rare in Europe, especially for a software company.
You will receive SEK 0.90 per share each quarter; the dividend yield is 0.8%. While this may seem low, keep in mind that the dividend has been increased by 20% or more annually for several years. The stock is down 17% year-to-date at a stock price of SEK 450.20. Would we considering buying Vitec at current levels?
Analysts are generally positive about Vitec, with 1 strong buy, 4 buys, 1 hold, but also a sell recommendation. The valuation remains high, and the dividend yield is relatively low, but there is no doubt that the dividend will continue to grow significantly in the coming years, in line with revenue and profits. The payout ratio is very low, with a free cash flow yield of nearly 4%. Additionally, the stable EBIT margin of over 20% provides confidence. However, the fact remains that Vitec operates in a highly competitive market and primarily grows through acquisitions, which brings its own risks. If the stock price drops a bit further, it’s definitely worth considering around the current 52-week lows. That said, we believe there may be better opportunities in Europe for strong dividend growers.
2. Lotus Bakeries (Belgium)
What they do: Lotus Bakeries is a Belgian company known worldwide for its biscuits, including the famous Lotus Speculoos. The company produces and sells a variety of baked goods, snacks, and cookies.