Best Dutch stocks to buy as the AEX index sits at a record high

European stocks have done well this year, with most indices like the German DAX, FTSE MIB, and CAC 40 sitting near their all-time highs. The same performance is happening in the Netherlands, where Dutch stocks have soared this year. 

The AEX index soared to a high of €881, which is much higher than last November’s low of €713. This means that it has jumped by over 21% from its lowest point in November last year. So, here are some of the best Dutch stocks to buy and hold.

AEX index chart

ING Bank, the biggest Dutch bank, is one of the best companies to buy and hold this year. It has soared by over 20% from its lowest level this year. It is also hovering near its highest level since 2008.

The company has done well, helped by its strong revenue and profitability growth. Most importantly, the firm has committed to returning vast sums of money to its shareholders through dividends and buybacks. It aims to do that by reducing its CET1 ratio to 13.5% by 2026.

ING Bank is one of the safest banks in Europe and has an annual dividend yield of about 7.41%, which is higher than most banks. 

Exor Group is one of the biggest Dutch conglomerates. It is an investment holding company that holds stakes in some of the biggest firms in Europe. 

Some of its top holdings are firms like Stellantis, Ferrari, CNH Industrial, Juventus Football Club, Iveco Group, and Christian Louboutin. Its group asset value jumped to over 39 billion euros.

Exor Group’s stock price has done well over the years, helped by the strong performance of its portfolio. This trend may continue in the coming months as the company implements its 250 million euro share buyback program.

Still, there are some companies in the portfolio that I don’t like. Some of these are names like Via, Stellantis, and The Economist.

Adyen is another Dutch stock I believe has more room to run. It has already jumped by more than 137% from its lowest level on record. As a result, the stock has erased all losses it made last year.

Adyen is a good stock to invest in because of its strong market share in the payment industry and its predictable recurring revenue. The company provides some of the biggest companies in the industry like Wix, Uber, and Spotify.

Its most recent results showed that its total processed volume rose by 29% in the second half of 2023 to over 544 billion euros. Net revenue rose by 23% to over 887 million. For the year, its total revenue jumped by over 22% to 1.6 billion euros. 

ASML stock price came into the spotlight this week after the company published weak financial results. Still, the stock is up by over 72% from its lowest level in 2023, helped by demand for semiconductors.

ASML is still a good investment because of the important products that the company sells. There is no other company that provides some of the products that it manufactures. The closest competitors are Applied Materials and Canon.

Therefore, there is a likelihood that the company will do well in the next few years. Consider what the Financial Times wrote about ASML after its weak financials.

There are other good Dutch stocks to buy and hold. Some of the most notable mentions are firms like Unilever, Heineken, Shell, and ASM.

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