The 3 Best Austrian Dividend Stocks To Buy

In the heart of Europe, we take a look and dig deep to find the three best Austrian dividend Stocks.
Austrian Dividend Stocks - compared

Key Takeaways

☑️ Austrian dividend stocks are not on many radars
☑️ 3 stocks are presented offering a good risk/reward ratio

☑️
Investors need to bring some time and patience

 

Three Austrian Dividend Stocks I Like

 

I’m a huge fan of 🇦🇹Austria, having spent lots and lots of time there, mainly in Tyrol and Vienna. I love the people, the food, the culture, the nature, and the general Zeitgeist (from my point of view more easy-going than Germans or Swiss). Its economy in the East (e.g. with Vienna) is fundamentally different from its economy in the West (the region of the Alps).

I recently had dinner with a friend of mine in Singapore, and he asked which Austrian dividend stocks I like. As I hadn’t looked into this, I was happy to be back home and instantly started looking into it.

I started by taking a look at the largest Austrian dividend stocks (ranked by market cap):

Company Industry Market Cap PE Div % Div since
Verbund Utilities $49b 24.0 1.1% 2000
OMV Energy $14b 4.2 5.7% 1991
Erste Group Bank $10b 5.4 10.6% 2021
Andritz  Industrials $4,6b 12.9 3.6% 2001
Raiffeisen Bank Bank $4,4b 1.8 0.0% 2021
Bawag Group Bank $4,3b 8.4 6.3% 2021
STRABAG  Industrials $4,0b 7.4 5.2% 2008
Vöstalpine  Materials $3,6b 2.2 5.7% 1996
CA Immobilien Real Estate $3,3b 6.1 0.0% 2012
Wienerberger Materials $2,6b 5.2 3.2% 2011
Lenzing Materials $2,1b 22.7 5.7% 2022
Österr. Post Industrials $2,1b 15.9 6.2% 2007

With a market cap of 49 Bio USD, the Verbund AG (WBO:VER) is the largest Austrian dividend stock, and the 800-pound gorilla in the room, being 3,5x larger than the second largest, OMV.

Just looking at the market cap, PE and Dividend however not enough, hence I short-listed those stocks I like the most, and ran some further comparisons:

Company Market Cap (M€) Rev Growth PB ROA ROIC
Wienerberger ⭐️

2,660

5.9 1.15 10.79 13.95
Verbund

49,808

10.7 7.40 8.15 6.67
Vöstalpine ⭐️

3,628

2.0 0.48 10.16 11.84
OMV ⭐️

14,122

7.4 0.75 5.95 11.85
Andritz

4,674

3.0 2.74 4.66 5.50
Erste Group

10,343

2.0 0.55 0.68 0.00

Knowing how much focus Buffett puts on the ROE, ROA, and ROIC, I made it my habit to look at those in detail. Three stocks rise above the noise level of 10% ROIC.

1⃣ Wienerberger

Wienerberger (WBO:WIE), a company that manufactures and sells building materials to the residential construction industry, has both a high Return-on-Assets AND high Return-on-Invested-Capital. If further doesn’t have any debt (!) and grew its revenues consistently throughout two very tough years (2020/2021).

 

2⃣ OMV

OMV (WBO:OMV), an international, integrated oil and gas and energy company, has a high ROIC, coupled with a low PE of 4.2. As an energy company with thousands of gas stations all over the country, I used myself hundreds of times, paying a noteworthy dividend since 1991 (which is very good for European dividend stocks)!

 

3⃣ Vöstalpine

Vöstalpine (WBO:VOE), a company that manufactures, processes, and develops steel products, also makes the cut with an ROIC of above 10, paired with a relatively high ROA of 10,16. It pays continuous dividends since 1996 (!), making it one of the only two Austrian dividend stocks with continuous dividend payments since the ’90s. It has an extremely low PE of just 2.

Let’s dig a little deeper into Vöstalpine:

Market Cap € M 3,638 Revenue € M 16,078
Enterprise Value € M 5,836 EPS € 9.19
PE 2.22 Beneish M-Score -1.92
PE Ratio without NRI 2.76 10-y EBITDA Growth Rate % 0.70
Forward PE Ratio 5.50 5-y EBITDA Growth Rate % -0.50
Price/Book 0.48 y-y EBITDA Growth Rate % 149.8
Price/Sales 0.23 EV-to-EBIT 3.14

Some further quick analysis of our third dividend stock, Vöstalpine:

  • Its market cap sits at 3,6 Bio €
  • Its EBITDA (2022) is 2,1 Bio € (!!)
  • the company has no debt
  • its gross margin % is declining
  • its revenue is growing slowly (2% p.a.)
  • it pays a regular but unstable dividend

 

Conclusion

I believe these three 🇦🇹Austrian dividend stocks can be considered as good picks for long-term-oriented (five plus years) dividend investors. Most of them have little to no debt, are dividend payers (and growers), with above 10% ROICs (the number 1 metric Warren Buffett looks at). Due to the multiple challenges Europe is currently facing, I believe the current levels are good buying opportunities, based on the assumption that you only invest cash that you won’t need to years to come.

 

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Hi there, I’m Noah, a hardcore passive income lover, and hunter of the world’s best dividend stocks. On my financial blog, I share my trades, portfolios & the passive income I generate. 

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