A genuine dividend gem out of Europe: 35 straight years of uninterrupted payments and a yield above 6% today. I'm talking about Rubis, a French company with a robust, future-proof business model and real charm. Most of its profit comes from its operations in the Caribbean's dream vacation destinations.

Rubis fuels planes at 19 Caribbean airports, including Barbados, St. Lucia, and Guadeloupe, handling the sourcing, transport, and storage that come with it. It's also active in Africa and Europe, selling fuel, LPG, lubricants, and bitumen. Rubis runs 1,167 gas stations across all three regions and leads the market in Kenya, Morocco, Madagascar, and Senegal. In short: Rubis supplies the energy that even the world's most beautiful places can't do without.

In the Caribbean, growth is driven mainly by tourism and economic development in French Guiana and, further out, Suriname. Africa is growing through population growth, urbanization, and infrastructure buildout, with the bitumen business now supplying 20 countries. In Europe, the main driver is the accelerating electrification of transport and data centers, boosting demand for LPG as a transition fuel. Add to that the growing solar unit Photosol and the 2026 entry into European bitumen. None of this sounds spectacular. It doesn't need to, especially at today's valuation.

First, there's the attractive dividend yield. As a French company, Rubis pays out once a year, most recently €2.07 per share, a yield above 6% at today's price. With 35 straight years of payments and a payout ratio under 50% of operating cash flow in nine of the last ten years, I consider it well covered. I expect it to keep rising too, at roughly the 6% average pace of the past decade, which should keep pushing up my yield on cost.

Second, there's the low valuation. The price-to-cash-flow ratio sits at 4.2, well below the historical average of around 10. That implies a potential cash flow yield above 20%, a real cushion against the risks, because Rubis, like in the past, will face challenges again.

The all-time high of €65.60 dates back to May 2018, followed by years of decline. The stock was long priced as a growth name and became overvalued. Real reasons drove the correction, too: a forced exit from Iran due to US sanctions, and a weak business at the Turkish sea terminal Dörtyol (sold in 2024), compounded by the sector-wide de-rating of fossil fuel stocks. The low came in October 2023, below €20. Since then, the stock has recovered to €33.70 and has been struggling to reclaim its 200-day moving average. Whether it manages that also depends on the half-year results due September 8.

General risks include dependence on energy prices and sales volumes, plus currency and political risk in its emerging markets. On top of that, I expect a sizable one-time hit to earnings. In November 2025, French regulators fined Rubis €64.7 million over alleged anticompetitive practices in Corsica. Rubis appealed but was obligated to pay regardless of the outcome, and that payment may already have been made. Measured against operating cash flow of €735 million in 2025 and an available credit line of €450 million, I consider that manageable, and I don't see a threat to the dividend. The valuation mentioned above still gives me a safety cushion. That charge is also already known to the market, so I don't expect a major price reaction, though I can't rule one out. Still, this dividend gem is now sitting in my portfolio.

Rubis trades primarily on Euronext Paris under RUI. If you don't have access to European exchanges, there's an unsponsored ADR on the US OTC market, ticker RBSFY. Trading volume there is thin, though, so stick to limit orders. One more thing to know: as a French company, Rubis withholds tax on dividends paid to non-French shareholders. That rate is 12.8% of the gross dividend. In practice, not every broker recognizes foreign residency automatically or in time. If your dividend gets treated as a domestic French payout by mistake, the total tax hit can climb to around 30%. You can reclaim the overpaid difference from the French tax authorities, but it takes time and usually comes with fairly high fees. So before you buy, it's worth checking exactly how your broker handles this.

Is Rubis (RUI) a buy? At current prices, I consider Rubis a buy for income-focused investors. The stock trades at a price-to-cash-flow ratio of 4.2, well below its historical average of 10, with a dividend yield above 6% after 35 straight years of uninterrupted payments. The main risk is a recent €64.7 million antitrust fine in France, which could weigh on near-term earnings, though I don't expect it to threaten the dividend.

Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. I am not a financial advisor. Always do your own research before making any investment decision.

Disclosure: I may hold direct or indirect positions (including options) in any securities mentioned in this newsletter. My opinions are my own and always honest.