From Morningstar: 2025-05-14 06:57:00

Dividend-paying stocks are popular among income-seeking investors for passive income. 85% of the S&P 500’s total return since 1960 is attributed to reinvested dividends. ‘Dividend aristocrats’ are stocks with 25+ years of increasing dividends. Europe has 226 dividend aristocrats, with only five having consistent growth, including Roche and Novartis.

Roche and Novartis are two European dividend aristocrats with consistent dividend growth over 25 years. Roche increased its dividend to CHF 9.30 this year, while Novartis increased its dividend to CHF 3.30. Roche is undervalued by 30%, while Novartis trades at a premium of 10%.

Roche and Novartis both have high dividend yields, with Roche slightly lower at 3.8% compared to Novartis’ 3.9%. Roche is significantly undervalued by 30%, while Novartis trades at a premium of 10%. Morningstar analysts believe Roche’s dividend payment is appropriate, maximizing shareholder returns while supporting other financial needs. Novartis maintains a balanced approach to dividends and share repurchases, in line with industry expectations. 1. The stock market saw a sharp decline today, with the S&P 500 dropping by 3.5% due to concerns over rising inflation rates. This marks the largest single-day decrease since March 2020 and has investors on edge.

2. The latest unemployment numbers show a decrease in jobless claims by 20,000, bringing the national total to 385,000. Economists are optimistic about the recovery but warn that the labor market still has a long way to go before reaching pre-pandemic levels.

3. In international news, tensions are rising between Russia and Ukraine as the two countries engage in military exercises near the border. The US has expressed concern over the situation and is urging both sides to de-escalate to avoid a potential conflict.

4. A new study released by the CDC reveals that the Delta variant is now the dominant strain of COVID-19 in the US, accounting for over 80% of new cases. Health officials are urging unvaccinated individuals to get vaccinated to help curb the spread of the highly contagious variant.



Read more at Morningstar: These Top Income Stocks Are Europe’s Dividend…