The headlines from Europe over debt concerns and the general market correction has created a new opportunity to buy solid companies at cheaper prices. All of these companies are based in Europe and pay very generous dividends. Many European companies pay higher dividends than their U.S. counterparts, so it makes sense to look globally for yield. With dividends looking solid here, and earnings continuing to grow at most of these companies, it's possible these stocks could see significant share price appreciation as well. Here are the European dividend stocks to consider now that they have pulled back:
Unilever PLC (NYSE:UL) is trading at $31.66. Unilever is one of the leading food and consumer product companies and is based in England. Unilever owns well known brands such as Bertolli, Ragu, Ben & Jerrys, Lipton, Hellman, Dove, Suave, Axe, etc. These shares have traded in a range between $25.90 to $33.06 over the past 52 weeks. The 50-day moving average is $31.92 and the 200-day moving average is $29.68. UL earnings estimates are about $2.24 per share in 2011 and $2.53 in 2012.
Why Unilever shares might be a solid dividend play: The dividend is about $1.32 per year which results in a yield of about 4.2%. This stock looks like a strong buy around $30 to $31 which is close to the 200-day moving average. Unilever makes products that will sell in any economy and it should see growth from emerging market countries.
Statoil ASA (NYSE:STO) is trading around $23.73. Statoil is a leading oil and gas company based in Norway. These shares have traded in a range between $18.39 to $29.67 in the last 52 weeks. The 50-day moving average is $25.77 and the 200-day moving average is $23.29. STO is estimated to earn about $2.88 per share in 2011 and $3.23 in 2012.
Why Statoil shares might be a solid dividend play: As of December 31, 2010, Statoil had proved reserves of 2,124 million barrels of oil, as well as 509 billion cubic meters of natural gas, corresponding to aggregate proved reserves of 5,325 million barrels-of-oil equivalent. Statoil also operates more than 2,200 fuel stations. Statoil recently announced a major oil discovery in the Barents Sea. The discovery of what is estimated to be about 500 million barrels of oil. You can read about this new oil discovery in this article: here. This new discovery is significant for STO, and it is likely that this company will continue to make additional finds in the Barents Sea. STO pays a solid dividend of about $1 per share which is equivalent to a 4% yield.
ENI SPA (NYSE:E) is trading around $45.38. ENI is a major integrated oil and gas company based in Italy. These shares have traded in a range between $36.38 to $53.80 in the last 52 weeks. The 50-day moving average is $48.09 and the 200 -day moving average is $45.42. E is estimated to earn about $5.58 per share in 2011 and $6.02 for 2012.
Why ENI shares might be a solid dividend play: ENI is one of the least known of all the major integrated oil companies. Because of this, it is also one of the cheapest. The PE ratio is only around 8 times earnings and E pays a strong dividend of about $2 per share which is equivalent to a yield of about 4.5%. E shares have been hit lately with the concerns over European debt problems and falling oil. The shares look attractive to buy now but I would only buy in stages in case it drops further.
France Telecom SA (FTE) is trading at $20.63. France Telecom is one of the leading telecommunications companies in France. These shares have traded in a range between $17.26 to $24.60 over the past 52 weeks. The 50-day moving average is $21.29 and the 200-day moving average is $20.91. FTE earnings estimates are about $2.36 per share in 2011. This puts the PE ratio at about 8 which is very reasonable.
Why France Telecom shares might be a solid dividend play: The dividend is about $1 per year which results in a yield of about 5%. This stock looks like a strong buy in the $20 range or below. These shares have dropped recently and this could be a solid buying opportunity. Regardless of what happens to the debt crisis in Europe, people are going to keep using their phones and Internet services.
Total SA (NYSE:TOT) shares are trading around $54.36 per share. Based in France, Total is a major integrated oil company with operations worldwide. These shares have traded in a range between $44.43 to $64.44 over the past 52 weeks. The 50-day moving average is $58.44 and the 200-day moving average is $55.71. TOT earnings estimates are about $8.18 per share in 2011 and $8.24 in 2012. The dividend yield on TOT is about 5%.
Why Total shares might be a solid dividend play: These shares are undervalued especially when compared to valuations of other major integrated oil names. The PE ratio is only about 7 and the dividend pays you to hold the stock. TOT stock has dropped recently along with oil prices and this looks like a good time to start buying in stages so you can take advantage of any further dips.
The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.
Disclosure: I am long STO. I may buy TOT and FTE stock soon.