Right now, many quality European multinationals are cheaper than their U.S. peers, as investors’ concerns about Europe’s economy have lowered share prices. The S&P 500 currently trades at 2.14 times book value and 12.4 times projected 2013 earnings, compared with 1.5 times book and 10.8 times estimated earnings for the Euro Stoxx 50 Index, an index for Eurozone blue chips. The EuroStoxx 50 also yields more than 4.5% — double… Read More
Right now, many quality European multinationals are cheaper than their U.S. peers, as investors’ concerns about Europe’s economy have lowered share prices. The S&P 500 currently trades at 2.14 times book value and 12.4 times projected 2013 earnings, compared with 1.5 times book and 10.8 times estimated earnings for the Euro Stoxx 50 Index, an index for Eurozone blue chips. The EuroStoxx 50 also yields more than 4.5% — double the S&P 500’s 2.25%. Yet even with all the negative headlines about Europe, I’ve had great success with several European stocks in my High-Yield International portfolio. Take Sanofi (NYSE: SNY), a French pharmaceutical company that’s up nearly 90% in the few short years I’ve owned it. Or U.K-based National Grid (NYSE: NGG), an electric distribution utility that has been paying a steady dividend since I added it in 2008 and is up 27% in two years. And now, I’ve pinpointed another European company worth considering for your… Read More