Investors often look to dividend stocks in the Netherlands for a reliable income stream. However, it's important to assess the sustainability of these dividends. For instance, companies like JDE Peet's may present a higher risk due to their high payout ratios, which could jeopardize their ability to maintain dividend payments in the long term.

Top 5 Dividend Stocks In The Netherlands

Click here to see the full list of 6 stocks from our Top Euronext Amsterdam Dividend Stocks screener.

Here's a peek at one of the choices from the screener and one that may be safer to dodge.

Top Pick

Acomo

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Acomo N.V. operates in sourcing, trading, processing, packaging, and distributing conventional and organic food ingredients for the food and beverage industry across Europe, North America, and other international markets, with a market capitalization of approximately €510.02 million.

Operations: The company's revenue is primarily generated from Edible Seeds (€257.29 million), Spices and Nuts (€429.96 million), Organic Ingredients (€436.38 million), Tea (€120.62 million), and Food Solutions (€24.07 million).

Dividend Yield: 6.7%

ACOMO's dividend profile shows a blend of strengths and areas for caution. Over the past decade, dividends have seen growth, yet their trajectory has been marked by volatility, reflecting some instability. Currently, ACOMo maintains a payout ratio of 85.7%, ensuring dividends are well-covered by earnings. Notably, its cash payout ratio stands at 26.1%, indicating robust coverage by cash flows compared to companies with unsustainable high ratios, positioning it favorably in terms of dividend safety amidst market peers trading at significant discounts to their fair value estimates.

• Click to explore a detailed breakdown of our findings in Acomo's dividend report.

• Insights from our recent valuation report point to the potential undervaluation of Acomo shares in the market.

One To Reconsider

JDE Peet's

Simply Wall St Dividend Rating: ★★☆☆☆☆

Overview: JDE Peet's N.V. operates globally, offering a diverse range of coffee and tea products, with a market capitalization of approximately €9.04 billion.

Operations: The company's revenue is primarily derived from its Europe (including Out-of-Home) segment at €4.72 billion, followed by CPG LARMEA at €1.50 billion, Peet's contributing €1.15 billion, and CPG APAC generating €0.79 billion.

Dividend Yield: 3.8%

JDE Peet's dividend sustainability is questionable due to its high payout ratio of 92.6%, indicating that dividends are not well-covered by earnings. Despite a stable history of dividend payments, the company has been distributing dividends for less than 10 years with no growth in payouts during this period. Additionally, its profit margins have declined from 9.5% to 4.5% over the past year, further stressing financial health and undermining the reliability of future dividend payments.

• Click here to discover the nuances of JDE Peet's with our detailed analytical dividend report.

Next Steps

• Navigate through the entire inventory of 6 Top Euronext Amsterdam Dividend Stocks here.

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Ready To Venture Into Other Investment Styles?

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• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ENXTAM:ACOMO and ENXTAM:JDEP.

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