Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Yield Hunting In European stocks

By Saxo BankStock MarketsMay 03, 2013 06:55AM ET
www.investing.com/analysis/yield-hunting-in-european-stocks-165547
Yield Hunting In European stocks
By Saxo Bank   |  May 03, 2013 06:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
ENGIE
-0.94%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DTEGn
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SOWGn
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
HTG
-0.60%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CNPP
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IFNC
-0.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
European stocks have the highest dividend yields amongst developed equity markets. High yield stocks are an attractive substitute to falling credit market yields. Telecommunication services stocks pay 6 percent dividend yield on average.

Many dividend opportunities in Utilities and Telecommunication Services
The chart below shows the average dividend yield across 24 industry groups in the STOXX 600 index. In essence it shows the low growth industries in the top (Utilities and Telecommunication Services) and the high growth industries in the bottom (Health Care Equipment & Services and Software & Services).

As we wrote back in 2011, European high yield stocks are not the land of milk and honey when only looking at pure dividend yield. A very high dividend yield often indicates a very uncertain future and thus falling share prices which often are not offset by high dividends. It is therefore not a straight conclusion to just jump into every high yield stock. Investors have to check the cash flow to equity coverage ratio (earnings before extraordinary items to dividends are used for financials) in order to not be lured by high dividend yields.
STOXX 600
STOXX 600

Among the three industries with the highest dividend yield on average these stocks are our top picks for high dividend yield with a good coverage:
  • Cable & Wireless Communications (Telecommunication Services) with 11.0 percent dividend yield
  • Deutsche Telekom (Telecommunication Services) with 7.8 percent dividend yield
  • GDF Suez (Utilities) with 9.2 percent dividend yield
  • Electricite de France (Utilities) with 7.2 percent dividend yield
  • CNP Assurances (Insurance) with 6.9 percent dividend yield
  • Tryg (Insurance) with 5.3 percent dividend yield
Yield Hunting In European stocks
 

Related Articles

Yield Hunting In European stocks

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email