E.ON AG and RWE AG are two of the largest utility companies in Germany. These two utilities are the in the top ten holdings of the newly launched SPDR S&P International Utilities Sector ETF – IPU. We wrote an article on this new fund titled “New Foreign Utilities ETF !” a few weeks ago.

1. E.ON AG : E.ON is the largest utility in Germany. In fact it is one of the world’s largest energy companies operating in 20 countries mostly in Europe. EON generates 1/3rd of all the electricity in Germany.

Ticker: EONGY
Dividend Yield: 3.68%

As per Morningstar website, EON beat both the S&P 500 Index and the utility sector index’ total returns in each of past 3 years. In the past 5 years, average annual dividend growth has been about 18.5%.

2.RWE AG : RWE is the second largest utility in Germany based in Essen.

Ticker: RWEOY
Dividend Yield: 4.49%

In the past 5 years, average annual dividend growth has been about 23.42%.