TSI’s Scott Clayton has pinpointed seven leading U.K. and European companies positioned to deliver robust, reliable income—even as trade dynamics shift with the U.S. As highlighted in our exclusive Globe and Mail feature, we applied our comprehensive 12-point Dividend Sustainability Rating System to showcase what every resilient portfolio needs: ongoing dividend growth, top-tier balance sheets, and steady earnings—especially from exporters now sorting out trade uncertainty and tariffs.
These high-potential selections include global leaders in software, food, pharmaceuticals, chemicals, aerospace, and industrial technology—companies with a consistent track record of rewarding investors through durable and rising dividends. Whether it’s an enterprise IT innovator, a consumer brands titan, or a pioneering healthcare giant, these firms combine industry dominance with evolving transatlantic opportunities.
Our screening zeroes in on U.K. and European exporters with a history of uninterrupted dividend payments, strong earning power, and solid organizational strength. The recent reductions in U.S. tariffs—from 30% down to 15% for the EU and to 10% for the U.K.—provide a newfound level of trade clarity, creating a tailwind for these firms and their investors.
TSI’s Dividend Sustainability Rating System gives each stock a score based on crucial metrics: at least five years of dividends (with extra credit for longer streaks and increases), clear executive commitment, operations in resilient, non-cyclical sectors, limited exposure to currency swings and government risk, prudent debt, sufficient liquidity, and a robust record of profits and cash flow. Premier industry status is the final hallmark, ensuring only the strongest make our shortlist.
Excerpt from theglobeandmail.com, DATE, 2025
What are we looking for?
Sustainable dividends from European and U.K. exporters likely to benefit from new deals set to normalize, if not optimize, trade with the U.S.
The screen
Share prices for many European stocks have already climbed higher on news the Trump administration will lower proposed tariffs on EU imports to 15% from the punishing 30% promised earlier this year. In June, U.K. exporters saw their own baseline U.S. tariff slashed to 10%. While both rates are still relatively high, the reductions, and the certainty they create, should normalize trade travelling across the Pond.
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That benefits Canadian investors who opt to hold U.K. and European stocks. At The Successful Investor, we see American Depository Receipts (ADRs), traded on the New York Stock Exchange, as the best way of holding those companies with primary listings on U.K. and European exchanges.
For this search, we start with a list of profitable U.K. and European exporters with strong prospects for sales and earnings growth. From there, we whittle the list down to dividend-payers before applying our TSI Dividend Sustainability Rating System. It awards points to a stock based on key factors:
One point for five years of continuous dividend payments – two points for more than five
- Two points if it has raised the payment in the past five years
- One point for management’s commitment to dividends
- One point for operating in non-cyclical industries
- One point for limited exposure to foreign currency rates and freedom from political interference
- Two points for a strong balance sheet, including manageable debt and adequate cash
- Two points for a long-term record of positive earnings and cash flow sufficient to cover dividend payments
- One point for an industry leader
Companies with 10 to 12 points have the most secure dividends, or the highest sustainability. Those with seven to nine points have above average sustainability; average sustainability, four to six points; and below average sustainability, one to three points.
More about TSI Network
TSI Network is the online home of The Successful Investor Inc. – the group of widely followed Canadian investment newsletters by editor and publisher Pat McKeough. They include our award-winning flagship newsletter, The Successful Investor, and the TSI Dividend Advisor. TSI Network is also affiliated with Successful Investor Wealth Management.
7 U.K. & European exporters to boost your dividends
What we found
Our TSI Dividend Sustainability Rating System generated a list of seven U.K and European ADRs ready to move even higher, while growing their dividends:
SAP SE (with a 0.7% yield), headquartered in Walldorf, Germany, sells and supports a range of enterprise software products for corporations, government agencies, and educational institutions worldwide.
Switzerland’s Nestle S.A. (4.3%) is one of the world’s largest food companies, marketing a wide variety of consumer/pet care brands.
Based in Cambridge, AstraZeneca PLC (2.1%) is the U.K.’s largest-listed company by market value. The firm discovers, develops and markets an array of prescription drugs.
Novartis AG (3.7%), headquartered in Basel, Switzerland, is another leading global drugmaker.
Leiden, Netherlands-headquartered Airbus SE (0.8%) designs and makes commercial aircraft, helicopters, military transports, satellites and more.
BASF AG (5.1%), based in Ludwigshafen, Germany, operates as a chemical company worldwide.
And finally, based in Munich, Germany, Knorr-Bremse AG (2.0%) is a global leader in rail and commercial vehicle braking systems.
We advise investors to do additional research on investments we identify here.
Scott Clayton, MBA, is senior analyst for TSI Network and associate editor of TSI Dividend Advisor.
