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European Luxury Car Makers and Energy Giants Pay Huge Passive Income Dividends
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24/7 Wall St. Insights
At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the ups and downs that always accompany the stock market, the reality for many people is the need to have solid passive income streams that accompany income from employment or other avenues.
The more passive income can help cover costly and rising costs like mortgage, insurance, taxes, and other expenses, the easier it is for investors to put away money for future needs as they build to retirement.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade or business in which the individual does not materially participate. It can also include income from limited partnerships and other similar enterprises where the individual is not actively involved.
We screened our 24/7 Wall St. passive income database, looking for solid dividend-paying stocks based outside the United States. We focused on Europe and found five top companies everyone knows but likely was not aware that they pay big and dependable dividends. All five are rated Buy at many top Wall Street firms.
This company is a premier European integrated oil giant, paying shareholders a hefty 5.63% divided. BP PLC (NYSE: BP) engages in the energy business worldwide.
It operates through four segments:
BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generating facilities, and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage, and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to:
In addition, it produces and refines oil and gas and invests in upstream, downstream, and alternative energy companies, advanced mobility, bio and low-carbon products, carbon management, digital transformation, and power and storage areas.
This European giant continues to print money and pays a massive 9.57% dividend. British American Tobacco PLC (NYSE: BTI) offers:
The company sells its products under these familiar brands:
The German luxury car giant pays investors a strong 8.24% dividend. Mercedes-Benz Group AG (OTC: MBGAF) is an automotive company in Germany and internationally that combines luxury with performance across its full line of models, including luxury sedans, SUVs, coupes, roadsters, convertibles, and more.
It operates through three segments:
The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and G-Class brands, as well as related spare parts and accessories.
It also provides:
The company, formerly known as Daimler, changed its name in February 2022. Founded in 1886, Mercedes-Benz Group has its headquarters in Stuttgart, Germany.
This French-integrated giant is another excellent way to play the energy sector from the European side, sporting a hefty 4.91% dividend and offering a solid total return proposition for investors. TotalEnergies S.E. (NYSE: TTE) is an integrated oil and gas company worldwide.
The company operates through four segments:
The company’s Exploration & Production segment involves oil and natural gas exploration and production activities in approximately 50 countries.
The Integrated Gas, Renewables & Power segment engages in:
The TotalEnergies Refining & Chemicals segment refines petrochemicals, including olefins and aromatics, and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins. It also converts biomass and processes elastomers. This segment also trades and ships crude oil and petroleum products.
Its Marketing & Services segment produces and sells:
The company also operates approximately 15,500 service stations.
Trading at a ridiculously cheap 4.4 times estimated 2024 earnings, this European automobile legend could be a massive home run while also paying a huge 9.34% dividend. Volkswagen AG (OTC: VWAPY) manufactures and sells automobiles in Germany, other European countries, North America, South America, the Asia-Pacific, and internationally.
Volkswagen manufactures and sells automobiles in:
The company operates through four segments:
The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles and related parts; and offers motorcycles.
The Commercial Vehicles segment develops, produces, and sells trucks and buses and offers parts and related services.
The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components.
The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services.
It sells products under these brands:
Five Dividend Kings Provide Perfect Passive Income Streams for Retirement
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Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
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