The chemicals sector is generally suitable for investment during any market condition due to the simple fact that chemicals are an essential ingredient in many of the products we use on a daily basis. For example, in a modern-day kitchen, chemicals are found in appliances, food items, packaging for foods, flooring, dish washing liquids, etc.
Some of the largest chemical firms in the world are based in Europe especially in Germany. The chemical industry is one of the largest industries in Germany and many German firms hold leadership positions at a global level. In order to identify the top chemicals firm in the Euro zone, I I reviewed the EURO STOXX® Chemicals Index. The 16 components in the index are selected based on their revenues.
The long-term performance of the EURO STOXX® Chemicals Index is shown below:
Click to enlarge
The index is up about 21% year-to-date in US dollar terms with dividends reinvested.
The components of the index are listed below together with their ticker on the US markets and their current dividend yields:
Dividend Yield as of Nov 13, 2012
|2||AKZO NOBEL||AKZOY||The Netherlands||3.45%|
|7||FUCHS PETROLUB PREF||N/A||Germany||N/A|
|8||K + S||KPLUY||Germany||3.75%|
|10||KONINKLIJKE DSM||RDSMY||The Netherlands||3.44%|
Note: Dividend yields noted are as of Nov 13, 2012
I have excluded tickers of companies with very thin or no trading volumes. Air Liquide(AIQUY), BASF (BASFY) and Bayer(BAYRY) are also members of the the EURO STOXX 50 Index, the blue-chip index for the Eurozone.
Disclosure: Long AKZOY