By now those of you (hopefully this is all of you) that are regular readers of Under the Radar are aware of (at least) three things.
I look for stocks and opportunities that Wall Street is not following, and Instant Experts of the Internet have not yet discovered.
The fewer times it has been mentioned on social media that more likely I am to be interested.
Second, I am a hug fan of dividends.
While they may be out of favor at this money of time, at least in the United States over the last 100 years half the market long term returns have come from dividends.
Unlike hot stocks at thigh prices, dividends cannot be removed from your wallet by a market decline.
Dividends also provide a nice cushion when prices are falling. By now you should know that you cannot do anything about day-to-day market fluctuations.
You can make sure you own quality companies that constantly send cash into your account.
Finally, I am a cheap skate. I read Ben Graham and Marty Whitman very early in my career and the lessons have stocks with me.
Cheap, high yield stocks with a strong history of dividend payments that Wall Street is not following are close to the stock market equivalent of an uncontested layup.
It has worked very well for me (and my readers) for an exceptionally long time.
You should also know that with I will buy stocks that pass my tests form no matter where they are located.
Right now, despite countless suggestions from some of the world's smartest investors, most US based investors are just ignoring European markets.
European stocks today offer a better value proposition than their U.S. counterparts. Valuations in Europe remain deeply discounted relative to history and relative to the United States, with many high-quality companies trading below book value and offering attractive dividend yields.
The United States equity market is dominated by a handful of mega-cap technology names that have pushed valuations to historically stretched levels. Europe provides investors with solid businesses that have strong balance sheets, global revenue exposure, and lower valuations, meaning investors can buy quality earnings at a discount.
Beyond valuation, Europe is also offering income. Dividend yields on European equities are double those of U.S. stocks, and payout ratios remain sustainable.
This makes Europe attractive not only for value investors but also for income-oriented strategies seeking consistent cash flow.
Meanwhile, central banks in Europe are moving toward easing as inflation trends lower, providing a tailwind for equities. In contrast, the Federal Reserve remains in a tug-of-war with sticky inflation data, keeping U.S. policy uncertainty higher.
When you combine cheaper entry points, stronger income streams, and a potentially friendlier monetary policy environment, Europe stands out as the more compelling buy for investors positioning capital today.
Here are three overlooked European companies with solid dividend yields trading at bargain basement prices:
Aperam (Ticker: APEMY)
Aperam, the Luxembourg-based stainless-steel producer spun out of ArcelorMittal, has carved out a reputation as one of Europe's most disciplined operators in a notoriously cyclical business. The company's mills span across Europe and South America, with a commercial presence in over forty countries, giving it both scale and reach.
Aperam's portfolio is focused on stainless, electrical, and specialty steels, products that tend to command more stable pricing power than commodity sheet steel. In recent years, management has placed heavy emphasis on energy efficiency, recycling, and high-value alloys, a strategic tilt that makes the business less exposed to the brutal price swings of standard steel.
From a valuation standpoint, the stock is compelling. Aperam trades at about 0.8 times book value, a discount to global peers and well below the level that would normally reflect the cash-generation ability of its operations.
Earnings are cyclical, but book value captures the underlying replacement cost of a well-invested plant base, and buying below book has historically been a recipe for outsized long-term returns in metals. The company's commitment to returning capital through dividends adds to the case. Investors are currently receiving an annual payout of $2.09 per ADR, which works out to a yield north of 6.5%, covered at about two-thirds of earnings.
For income-oriented value investors, it is hard to argue with buying a global steel champion at less than book and locking in a mid-single digit yield while waiting for the next upcycle.
Land Securities Group (Ticker: LDSCY)
Land Securities is one of the United Kingdom's leading real estate investment trusts, with a portfolio that includes prime office buildings in London, retail centers across the country, and mixed-use developments that reflect the evolution of modern urban property markets. Its flagship assets, such as Nova in Victoria and Bluewater in Kent, are not just properties but destinations.
The company has also been rotating capital into more resilient sectors, such as mixed-use campuses and London's high-end office market, while disposing of non-core assets to sharpen its focus. This is not just another property landlord; Landsec is actively shaping the real estate landscape in one of the world's most dynamic cities.
Valuation tells the story here. Shares of LDSCY trade at about 0.7 times book value, a steep discount to the underlying net asset value of the properties. Historically, buying high-quality U.K. REITs at significant discounts to book has proven to be a patient investor's best friend, as markets eventually close that gap when conditions normalize.
The discount is particularly striking given that Landsec's balance sheet is solid, with moderate leverage and long-dated debt maturities. Investors are being paid handsomely to wait: the current dividend yield is in the range of 6 to 7%, with a payout ratio of about three-quarters of earnings.
That is a rich income stream supported by trophy assets that will remain in demand regardless of short-term market noise. For anyone who likes collecting rent checks from London's best properties without paying full price, Land Securities is a textbook buy.
TORM plc (Ticker: TRMD)
TORM is a Danish shipping company with a long history in the refined product tanker market. Its fleet of more than ninety modern tankers transports gasoline, jet fuel, diesel, and other refined petroleum products around the globe.
This is a business that lives and dies by day rates, and TORM has benefited enormously from the post-pandemic dislocation in global energy logistics, where sanctions, supply bottlenecks, and shifting trade flows have combined to keep product tanker rates elevated. The company's operating leverage is enormous: a small increase in daily time-charter equivalent rates flows directly into free cash flow, which management has chosen to funnel back to shareholders through generous dividends.
The valuation remains undemanding given the balance sheet strength. TORM trades at about 1.1 times book value, a modest premium for a shipping company during one of the strongest earnings environments in decades. The book value reflects a modern fleet carried at conservative valuations, meaning the real market value of its vessels exceeds reported equity.
With a strong liquidity position and low net leverage, that premium to book is more than justified. On the income side, TORM is a monster. The annualized dividend yield sits at 13%, with payouts flexing up and down in line with quarterly earnings. Investors have already collected multiple dollars per share this year, and the distribution policy ensures that when the market is strong, cash goes straight back to shareholders.
For investors comfortable with the inherent volatility of shipping, TORM represents one of the most attractive ways to own high-yielding hard assets at close to book value.
