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Which European Stocks Pay Dividends in June 2026?

HSBC, Shell and Unilever are among 15 large-cap European companies set to pay dividends this June.

An engine bearing the Rolls-Royce logo stands in a hall at the Rolls-Royce plant in Dahlewitz.
Christophe Gateau/dpa via Getty

Key Takeaways

  • 15 European large-cap companies are set to pay dividends.
  • The highest yielding dividend payer is BP, while the lowest-yielding is Rolls-Royce.
  • Two of the dividend-paying stocks are rated 5 stars by Morningstar, making them deeply undervalued.

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 June, 15 European stocks will make payouts to investors.

Key Morningstar Metrics

BAE Systems BA.

Loredana Muharremi, equity analyst for Morningstar, says: “BAE has maintained a reliable capital return framework. Dividend payments have risen consistently, and share buybacks remain active, with roughly GBP 500 million repurchased annually. Given the durability of the backlog, franchise positions, and cash generation, we expect this distribution strategy to continue.”

BP BP.

Allen Good, equity analyst for Morningstar, says: “We rate BP’s prior shareholder distribution policy as appropriate. The variable shareholder return model is better suited to BP’s new strategy and for potential commodity price volatility. It’s unclear what its future plans will be once target debt levels are reached, but we expect installation of another variable payout scheme that matches peers. This would ensure that the dividend remains safe even at lower oil prices, while setting investor expectations for returns at higher prices, when BP is likely to generate greater surplus cash. By including resilience in its dividend framework, BP should avoid the situation it faced in the past, where the payout grew to unmaintainable levels over time.

Saint-Gobain SGO

Matthew Donen, equity analyst for Morningstar, says: “Saint-Gobain targets a dividend payout ratio of between 30% and 50% of its net income, which is appropriate given the group’s ambitions to gain market share in the highly fragmented construction chemicals sector.”

Deutsche Bank DBK

Niklas Kammer, equity analyst for Morningstar, says: “Capital distributions are good and overall have improved Deutsche’s equity story. However, we don’t think Deutsche has credibly shaken its elevated risk of shareholder value destruction through legal issues.”

Diageo DGE

Verushka Shetty, equity analyst for Morningstar, says: “In February 2026, Diageo announced a new dividend payout ratio target of 30%-50% of earnings, below the historical five-year average of 65%. We view this as appropriate, as the company seeks to improve operations and reduce leverage. Over the medium term, we expect the payout ratio to be close to 50%, which is standard for the industry.”

EssilorLuxottica EL

Glencore GLEN

Jon Mills, equity analyst for Morningstar, says: “With the balance sheet in good shape, we expect a greater share of free cash flow to find its way to shareholders. The company’s policy of paying a base distribution based on prior-year cash flows plus potential additional (or top-up) shareholder returns (including share repurchases and/or further distributions) to the extent net debt doesn’t exceed its USD 10 billion target is appropriate, in our view.”

HSBC Holdings HSBA

Kathy Chan, equity analyst for Morningstar, says: “HSBC has been making larger shareholder distributions through buybacks and dividends in the past few years as its earnings improved, which we view as appropriate.”

Iberdrola IBE

Tancrede Fulop, equity analyst for Morningstar, says: “Shareholder distributions look appropriate. We anticipate a 2024-29 dividend CAGR of 6.9% with an average payout ratio of 74%.”

Reckitt Benckiser Group RKT

Diana Radu, equity analyst for Morningstar, says: “Reckitt’s approach to shareholder distributions is appropriate. Reckitt has a progressive dividend policy and has increased dividends by 5% per year over the last two years, which we expect will continue over the midterm. Since October 2023, the company launched two share buyback programs for the amount of GBP 1 billion each. The latest buyback program with around GBP 1 billion amount was announced in early 2026. We believe these decisions were timely given the pronounced share price weakness experienced in recent years.”

RELX REL

Rob Hales, equity analyst for Morningstar, says: “RELX returns capital to shareholders through a combination of dividends and buybacks, which we think is appropriate given its business fundamentals and relatively mature end markets. Buybacks are regular, not opportunistic. Given its relatively stable business and low uncertainty, we think most buybacks will be completed at around fair value and therefore will not have a material impact on the valuation.”

Rolls-Royce Holdings RR.

Loredana Muharremi, equity analyst for Morningstar, says: “With free cash flow now structurally higher, the company has moved to a more regular shareholder return framework. After resuming dividends in 2024, Rolls-Royce delivered a 2025 dividend of GBX 9.5 per share and reiterated a target payout ratio of 30%-40% of underlying profit. In addition, it completed a GBP 1 billion share buyback in 2025 and has committed to a multiyear GBP 7 billion‑GBP 9 billion buyback over 2026‑28, which is intended to be funded from free cash flow. Given the step‑up in free cash flow already delivered and the upgraded midterm guidance of GBP 5.0 billion‑GBP 5.3 billion per year by 2028, we view the planned buyback as achievable without compromising balance‑sheet strength.”

Shell SHEL

Allen Good, equity analyst for Morningstar, says: “We rate Shell’s shareholder distribution policy as appropriate. After it cut its dividend in 2020, management introduced a variable shareholder-return model, which is better suited to its new strategy as well as to potential commodity price volatility. Shell will return 40%-50% of operating cash flow to shareholders through dividends, including 4% annual growth, and repurchases. This should ensure that the dividend remains safe even at lower oil prices while setting investor expectations for returns at higher prices when Shell is likely to generate greater amounts of operating cash. Although Shell is steadily increasing its dividends, it does so at a much reduced level. As such, we do not see Shell repeating the situation it faced in the past, where the payout grew to unmaintainable levels over time.”

Societe Generale GLE

Johann Scholtz, equity analyst for Morningstar, says: “With capital levels strengthened, Société Générale has been able to maintain a balanced and consistent approach to shareholder returns. The bank has shown a willingness to return excess capital through a mix of dividends and share buybacks while preserving an appropriate buffer above regulatory requirements. This more measured distribution strategy reflects management’s commitment to maintainable, predictability, and long-term value creation.”

Unilever ULVR

Diana Radu, equity analyst for Morningstar, says: “We think shareholder distributions are appropriate. Dividends have been the preferred vehicle for returning capital to shareholders, and Unilever has delivered slightly above-industry-average payout ratios of around 60% over the last decade. Share repurchases have also been an important use of surplus cash, especially following more sizable asset sales, and we think they have generally been carried out at a level that has created value for shareholders. We expect the firm to maintain its high dividend payout ratio and to be opportunistic when it comes to repurchasing shares. However, tuck-in acquisitions will probably remain a higher priority, particularly in the beauty and well-being space. Larger, transformative acquisitions are off the table.”

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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