20 Highest Yielding, European Stocks With Safe Heaven Aspects

 | Jun 21, 2012 03:37AM ET

Everybody talks about the euro debt crisis and the expected economic slowdown in Europe. The stock markets within some of these countries have really performed badly, but this gives investors a good opportunity to find stocks with attractive valuations.

I screened all stocks with headquarters in Europe that also list in America for a positive dividend yield as well as a beta ratio of less than 1 (lower volatility than the market). In order to screen only highly liquid stocks, I decided to present only those companies with a market capitalization above USD 10 billion. Twenty stocks emerged, of which sixteen are recommended to buy.

British American Tobacco (NYSEAMEX:BTI) has a market capitalization of $98.72 billion. The company employs 87,813 people, generates revenues of $24,211.88 million and has a net income of $5,306.52 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8,293.90 million. Because of these figures, the EBITDA margin is 34.26 percent (operating margin 30.66 percent and the net profit margin finally 21.92 percent).

Financial Analysis: The total debt representing 37.89 percent of the company’s assets and the total debt in relation to the equity amounts to 125.82 percent. Due to the financial situation, a return on equity of 35.63 percent was realized. Twelve trailing months earnings per share reached a value of $4.91. Last fiscal year, the company paid $3.98 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.52, P/S ratio 4.04 and P/B ratio 7.70. Dividend Yield: 4.03 percent. The beta ratio is 0.62.


Unilever (NYSE:UL)
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has a market capitalization of $91.86 billion. The company employs 169,000 people, generates revenues of $58,952.56 million and has a net income of $5,865.19 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,467.02 million. Because of these figures, the EBITDA margin is 16.06 percent (operating margin 13.84 percent and the net profit margin finally 9.95 percent).

Financial Analysis: The total debt representing 28.87 percent of the company’s assets and the total debt in relation to the equity amounts to 95.98 percent. Due to the financial situation, a return on equity of 29.55 percent was realized. Twelve trailing months earnings per share reached a value of $1.86. Last fiscal year, the company paid $1.14 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 17.56, P/S ratio 2.58 and P/B ratio 5.10. Dividend Yield: 3.79 percent. The beta ratio is 0.76.


Diageo (NYSE:DEO)

has a market capitalization of $62.97 billion. The company employs 24,020 people, generates revenues of $15,622.40 million and has a net income of $3,171.33 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,572.26 million. Because of these figures, the EBITDA margin is 29.27 percent (operating margin 26.12 percent and the net profit margin finally 20.30 percent).

Financial Analysis: The total debt representing 42.26 percent of the company’s assets and the total debt in relation to the equity amounts to 159.33 percent. Due to the financial situation, a return on equity of 41.07 percent was realized. Twelve trailing months earnings per share reached a value of $4.17. Last fiscal year, the company paid $2.54 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.08, P/S ratio 4.00 and P/B ratio 7.59. Dividend Yield: 2.64 percent. The beta ratio is 0.76.


Syngenta AG (ADR) (NYSE:SYT)

has a market capitalization of $30.07 billion. The company employs 26,300 people, generates revenues of $13,268.00 million and has a net income of $1,600.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2,523.00 million. Because of these figures, the EBITDA margin is 19.02 percent (operating margin 15.46 percent and the net profit margin finally 12.06 percent).

Financial Analysis: The total debt representing 16.94 percent of the company’s assets and the total debt in relation to the equity amounts to 38.98 percent. Due to the financial situation, a return on equity of 21.42 percent was realized. Twelve trailing months earnings per share reached a value of $3.45. Last fiscal year, the company paid $1.53 in form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.11, P/S ratio 2.33 and P/B ratio 4.04. Dividend Yield: 2.60 percent. The beta ratio is 0.67.


Take a closer look at the full table of the safest European dividend stocks. The average price to earnings ratio (P/E ratio) amounts to 17.56 and forward P/E ratio is 12.51. The dividend yield has a value of 3.90 percent. Price to book ratio is 4.48 and price to sales ratio 3.07. The operating margin amounts to 22.22 percent and the beta ratio is 0.73. The average stock has a ROI of 15.30 percent.

Here is the full table with some fundamentals (TTM):


Related stock ticker symbols:

FTE, AZN, NGG, VOD, GSK, SNY, NVS, BTI, UN, UL, PSO, ACE, DEO, SYT, ACN, NVO, COV, FMS, ARMH, SHPGY

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