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European Stocks Crushing US Rivals: 5 Strong Buy Stocks With Huge Dividends

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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. Typically, we have covered companies in the United States, and with good reason. Both 2023 and 2024 brought massive 20+ gains from the S&P 500 on the strength of the Magnificent 7 and the enormous impact of artificial intelligence. With the first quarter drawing to a close and the major U.S. indices poised to finish the quarter down, many investors are looking across the pond to Europe for investment ideas.
The benchmark MSCI Europe Index is up 10.58% so far in 2025.
The S&P 500 is down 3% this year and has closed down at one point over 10% from the February highs.
Tariffs, sticky inflation, and lower consumer confidence have kept selling pressure active.
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We screened our 24/7 Wall St. European MSCI stock database, looking for solid dividend-paying companies based outside the United States. We focused on Europe and found five top companies everyone is familiar with but likely unaware that they pay big and dependable dividends. All five are rated Buy at many top Wall Street firms, and all trade on U.S. indices.
BP PLC (NYSE: BP) is one of the oil and gas “supermajors” and one of the world’s largest companies, as measured by revenues and profit. This European company 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 British multinational company manufactures and sells cigarettes and other tobacco and nicotine products. European giant British American Tobacco PLC (NYSE: BTI) is a consumer-centric, multi-category consumer goods company that pays shareholders a huge, dependable dividend.
The company provides tobacco and nicotine products. Its segments include:
The company’s product categories include:
Vapor products are handheld, battery-powered devices that heat a liquid (called an e-liquid) to produce an inhalable aerosol known as vapor. THPs are a new category of tobacco product designed to heat rather than burn tobacco.
Modern Oral products are smoke-free oral nicotine products called nicotine pouches, designed for use in the mouth. Traditional oral products include snus and snuff.
British American Tobacco brands include:
Mercedes-Benz Group AG (OTC: MBGAF) is a German luxury and commercial vehicle automotive brand with a big 6.96% dividend. The European company 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 has its headquarters in Stuttgart, Germany.
Shell PLC (NYSE: SHEL) is a British multinational oil and gas company headquartered in London. This European energy giant offers investors big upside potential, as it operates as an energy and petrochemical company in Europe, Asia, Oceania, Africa, the United States, and the rest of the Americas.
The company operates through six segments:
It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market.
The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, and carbon-emission rights; it also markets and sells LNG as a fuel for heavy-duty vehicles.
In addition, it trades in and refines crude oil and other feedstocks, such as:
Further, the company produces base chemicals comprising ethylene, propylene, aromatics, and intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol.
Shell also generates electricity through wind and solar resources; produces and sells hydrogen, and provides electric vehicle charging services.
Volkswagen AG (OTC: VWAPY) is a German public multinational conglomerate manufacturer of passenger and commercial vehicles, motorcycles, engines, and turbomachinery. This European automobile legend could be a massive home run, trading at a ridiculously cheap 4.4 times estimated 2025 earnings, with an 8.99% dividend. Volkswagen 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:
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