I see Recordati as a measured income-growth buy, not a high-yield holding. Its trailing yield is only 1.3%, but the estimated 12-month yield is 2.7%, with the dividend rising from €0.95 in 2019 to €1.30 in 2025 and an estimated €1.42. The 56% payout looks supportable alongside Q2 free cash flow of €156M, up 114.0%, and debt/equity of 1.08, down 18.0%. Earnings provide further backing: 2026 EPS is estimated at €2.447, up 15.4%, while 2027 is €3.788; that unusually steep forecast warrants caution. At €52.55, the 21.0x trailing P/E and just 3.7% median-target upside limit near-term appeal, though the estimated 2027 P/E is 13.9x. I’ll start a small position with 10% of available cash.
How it picked this company
- Searched: all markets · EUR · yield ≥ 2.5% · fastest EPS growth first
I’m looking for euro-quoted dividend growers with a moderate starting yield and improving EPS, prioritizing income sustainability over unusually high headline yields.
- 15 matches
- Compared: REC.MI, INGA.AS, DTG.DE
These offer a balance of a relatively defensive healthcare dividend, a solid-yielding bank, and a growing industrial payout; their payout coverage and dividend histories merit closer review.
- Chose this one:
Recordati offers the most defensible dividend profile, with healthcare earnings growth supporting its 2.7% yield and less cyclicality than ING or Daimler Truck. Its yield is lower, but the strong recent profit growth and forecast EPS increase make it a better fit for sustainable, growing income.