Eight European Stocks with Excellent Yields

European telecom sector growth has been flat for a few years now. Some of the fixed line and mobile telecom service provider stocks have become value plays with good dividends. Lets look at eight such telecom stocks from Europe.

1. Deutsche Telekom AG (DT), is a German integrated telecom provider. Currently the stock pays a dividend of 7.98%. The 5-year annual dividend growth rate is 16.09%and the annual revenue is $84.0B.

2. France-based telecom services provider France Telecom (FTE) serves about 170 million customers and the owner of Orange brand. It is also the largest wireless operator in France with nearly half the market share. FTE has a dividend yield of 10.82% and a P/E ratio of 9.04. The annual revenue growth has been flat for the past 5 years. FTE is a consistent performer among its peers in the industry.

3. Magyar Telekom (MTA) is a Hungarian telecom services provider. MTA offers an excellent dividend yield of 11.35%. P/E is 9.25. The stock id down 38% Year-To-Date.Back in January Forbes magazine called it a “Global Undiscovered Gem”. MTA also doubled the dividend over the past six years.

4. The Greek telecom provider Hellenic Telecom (OTE) provides communication services in Greece, Romania,Albania and Bulgaria.The current dividend yield is 7.83% and the P/E is 8.18.Earnings has grown at 5% over the last 5 years.

5. Portugal Telecom (PT) offers a wide range of telecom services in Portugal and Brazil.PT pays a dividend of 10.6% and the P/E is 11.48. The 5-year earnings growth is negative.The annual dividend growth rate is 36.8% and the total revenue is flat over the last five years.

6. Telecom Italia (TI) is an Milan-based Italian company operating in Europe, South American and the Mediterranean Basin. Annual earnings growth over the past 5 years has been extremely negative.TI has planned to announce a strategic change later this year.Dividend yield is 10.29%.

7. The diversified Spanish communications company Telefonica SA (TEF) operates in Spain, Europe and Latin America. The market cap. is $100.5B and the total revenue is $77.5B. TEF pays a 5.63% dividend.The annual Total Revenue and Dividend growth rate is 14.49% and 24.57% respectively.

8. Vodafone (VOD) is UK-based global wireless carrier with operations in Europe, the Middle East, Africa, the Asia Pacific, and the United States. The company is growing its subscriber base in the emerging markets of Asia, Eastern Europe and Africa.Currently VOD pays a 9.49% dividend. The annual dividend growth for the past 5 years is 31.16%. In the US, Verizon Wireless is a joint venture between Vodafone and Verizon Communications.

Comments

[Lilliana:]

You forgot ..Lloyds TSB.........just look at its yield and no subprime.
But then thats a bank....who wants a bank.?

2008 Oct 12 10:44 AM

[InnocentsAb...:]

The real puzzle is how to purchase some of the European and African telecoms at this point. Are these in the pink sheets ? I will be checking, but if you re-issue the article, please note what exchanges an American investor would have access to them.

This is kind of a general problem for Taiwanese, Japanese, and European shares.

2008 Oct 12 01:42 PM

[David Hunkar:]

Lilliana
Yes there are plenty of banks that have great yields now.But I left them out in this piece since they are banks.:)

InnocentsAbroad
Noope.The stocks above are not traded in pink sheets.They are on the New York Stock Exchange(NYSE).I usually mention in my article if any stock mentioned is listed on the pink sheets.But I like your idea.To remove any confusion, I will make a note on where the discussed stocks are traded in my future articles.

-David

2008 Oct 15 08:45 PM