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Which European Stocks Pay Dividends in July 2026?

TotalEnergies, Iberdrola, Enel, and GSK are among seven large-cap European companies set to pay dividends this July.

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Key Takeaways

  • Seven European large-cap companies are set to pay dividends next month.
  • The highest yielding dividend payer is Italy’s Enel, while the lowest-yielding is Experian.
  • Three of the dividend-paying stocks, GSK, National Grid, and Experian, are rated as undervalued by Morningstar.

Each month, Morningstar screens the 100 largest European companies by weight in the Morningstar Europe Index to see which ones are due to pay a dividend. In July, seven European stocks will make payouts to investors.

Dividend Stocks: Key Morningstar Metrics

TotalEnergies TTE

Allen Good, equity analyst for Morningstar, says: “We rate Total’s shareholder distribution policy as appropriate. Total was one of the few oil majors to maintain its dividend in 2020 and took additional steps to reduce costs and capital spending to keep the dividend affordable. The bulk of share repurchases occurred when share prices were below our fair value estimate and, therefore, looked reasonable. Its introduction of a variable distribution plan makes sense given the likely continued volatility of commodity prices during the remainder of the decade.”

GSK GSK

Jay Lee, equity analyst for Morningstar, says: “We currently view GSK’s dividends as fair. In the past, it paid out close to 70%, which is a bit too high in our view. However, since 2022, the ratio has been closer to 40%, which is a better ratio for this industry as it leaves more cash on hand to fund necessary research and development.”

Enel ENEL

Tancrede Fulop, equity analyst for Morningstar, says: “Shareholder distribution looks appropriate to us. In February 2026, Enel pledged to grow its dividend by 6% annually until 2028, in line with EPS. This is the first time that Enel has pledged a specific annual growth rate for the dividend over three years.”

National Grid NG.

Tancrede Fulop, equity analyst for Morningstar, says: “Shareholder distribution appears poor to us. The company used to be a dividend aristocrat as it increased its dividend every year between 1998 and 2024. Combined with high investments, this led to a deterioration of the financial headroom that entailed a credit rating downgrade in 2021. However, the company maintained its dividend policy indexed to inflation, which soared as of 2022. To fund a 50% investment step-up by 2029 driven by the energy transition, the group announced a highly dilutive rights issue in May 2024 and a rebase of its dividend on the new number of shares that will entail a 20% fall in 2025, by our estimates. Had the group cut its dividend earlier, it could have avoided such a painful decision for its shareholders.”

Experian EXPN

Rajiv Bhatia, equity analyst for Morningstar, says: “Our Capital Allocation Rating for Experian is Standard. In our view, its balance sheet is sound, its capital investment decisions are fair, and its capital return strategy is appropriate.”

Iberdrola IBE

Tancrede Fulop, equity analyst for Morningstar, says: “We ascribe a Standard Morningstar Capital Allocation Rating to Iberdrola. The balance sheet looks sound, with leverage that stands below peers’. Shareholder distributions look appropriate.”

Compass Group CPG

Ben Slupecki, equity analyst for Morningstar, says: “We rate Compass’ shareholder distribution policy as appropriate. Compass distributes 50% of its underlying net income, a sound strategy that enables higher payouts during strong periods. The company has also repurchased shares during periods of strong growth and pulled back during more challenging market environments.”

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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