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

Table of Contents

Disclaimer: I’m not a financial advisor. No content is meant to be a recommendation. Please do your own research. Pages might contain affiliate links. Please read my Disclaimer page.

 

Three Austrian Dividend Stocks I’d Buy

 

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):

Ticker Company Industry Market Cap (M€) PE Div % Div since
WBO:VER  Verbund Utilities $49,808 24 1.1 2000
WBO:OMV OMV Energy $14,160 4.2 5.65 1991
WBO:EBS Erste Group Bank Bank $10,526 5.4 10.59 2021
WBO:ANDR Andritz  Industrials $4,674 12.9 3.60 2001
WBO:RBI Raiffeisen Bank Bank $4,435 1.8 0 2021
WBO:BG Bawag Group Bank $4,322 8.4 6.33 2021
WBO:STR STRABAG  Industrials $4,003 7.4 5.21 2008
WBO:VOE Vöstalpine  Materials $3,628 2.22 5.67 1996
WBO:CAI CA Immobilien Real Estate $3,337 6.1 0 2012
WBO:WIE Wienerberger Materials $2,660 5.2 3.22 2011
WBO:LNZ Lenzing Materials $2,115 22.7 5.66 2022
WBO:POST Österr. Post Industrials $2,091 15.9 6.22 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:

Symbol Company Market Cap (M€) Rev Growth ROE PB ROA ROIC
WBO:WIE Wienerberger ⭐️

2,660

5.9 24.59 1.15 10.79 13.95
WBO:VER Verbund

49,808

10.7 25.63 7.40 8.15 6.67
WBO:VOE Vöstalpine ⭐️

3,628

2.0 25.37 0.48 10.16 11.84
WBO:OMV OMV ⭐️

14,122

7.4 20.39 0.75 5.95 11.85
WBO:ANDR Andritz

4,674

3.0 23.04 2.74 4.66 5.50
WBO:EBS Erste Group

10,343

2.0 11.31 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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