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How Europe’s Largest Dividend Stocks Performed in November 2025

UK and Switzerland stocks drive the bulk of the dividend index returns.

Collage illustration featuring a Euro coin, a city skyscraper, and abstract graphical elements.

Key Takeaways

  • The Morningstar Europe Dividend Yield Focus Index has outperformed the Morningstar Europe Index so far this year.
  • Roche, British American Tobacco, and Lloyds Banking Group were the strongest performers in November 2025.
  • Sanofi was the only stock among the top 10 to record a negative return during the month.

The Morningstar Europe Dividend Yield Focus Index posted a gain of 3.09% in euros during November, significantly outperforming the 0.89% rise of the broader Morningstar Europe Index, underscoring the resilience of high-dividend strategies during the month.

By country, UK and Switzerland dominated the landscape of Europe’s high-yielding companies during November, a trend throughout 2025. Swiss equities account for 28.4% of the index but were responsible for 52.5% of the index’s return while British equities which account for 24.5% of the index, were responsible for 30.0% of the index’s return.

By sector, those that contributed most to the index’s profitability were healthcare and consumer staples.

Winners and Losers Among Europe’s Dividend Leaders

Last month the performance of the top 10 Europe’s largest dividend-paying companies varied considerably, shaped by shifting investor sentiment.

Healthcare companies were the standout performers, benefiting from renewed investor preference for defensive sectors. Financials, particularly in the UK, also performed well as expectations for interest-rate cuts moderated. In contrast, some consumer-facing firms continued to struggle with weak demand.

Roche ROG was the best performing company in the group, with an 18% increase in euros during the month. According to Karen Andersen, equity analyst at Morningstar, the reason for this strong performance is that its breast cancer drug candidate, giredestrant, “improved invasive disease-free survival compared to standard treatment in early-stage patients.”

British American Tobacco BATS also delivered a robust return of nearly 14%. BAT’s strong performance in November 2025 was supported by renewed investor interest following UK regulatory discussions that eased concerns over next-generation products, combined with confidence in the company’s robust cash flows and high dividend yield.

Lloyds Banking Group LLOY extended its strong performance with an 8% gain in November. The market responded positively to guidance upgrades, especially regarding net interest income and loan-loss expectations. The Bank of England’s slower-than-anticipated pace of monetary easing supported profitability in the banking sector, and share buybacks continued to strengthen investor confidence. In November Lloyds repurchased over 10 million of its own shares under its £1.7 billion share-buyback programme as part of a broader effort to return surplus capital to shareholders.

Novartis NOVN delivered a gain of nearly 5% as new product launches in immunology and other therapeutic areas continued to gain traction. Jay Lee, analyst for Morningstar says: ”Slowing revenue growth compared with first-half 2025 is in line with our view, given generics competition. In addition to the Avidity acquisition, Novartis had several incrementally positive pipeline developments that can support its new five-year revenue growth target.”

But not all the European healthcare companies performed well in November. Sanofi SAN was the only stock among the top 10 to record a negative return in November. The company moved against the broader trend, declining by 2.1% while the European healthcare sector gained 4.9%, leaving the company lagging well behind its peers.

Key Morningstar Metrics for Top European Dividend Stocks

British American Tobacco BATS

Analyst: Kristoffer Inton

Roche ROG

Analyst: Karen Andersen, CFA

Novartis NOVN

Analyst: Jay Lee

Zurich Insurance Group ZURN

Analyst: Henry Heathfield, CFA

Sanofi SAN

Analyst: Jay Lee

Nestlé NESN

Analyst: Diana Radu, CFA

Unilever ULVR

Analyst: Diana Radu, CFA

Lloyds Banking Group LLOY

Analyst: Niklas Kammer, CFA

Deutsche Telekom DTE

Analyst: Javier Correonero

Vinci DG

Analyst: Matthew Donen, CFA

What Are the Long-Term Returns of European Dividend Stocks?

The following table shows the one, three and five-year returns for the top holdings in the Morningstar Europe Dividend Yield Focus Index. When evaluating stocks, investors should focus on long-term returns over several years and market cycles. However, short-term returns can provide valuable information.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

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