Top Two German Utility Stocks

German Alps

Photo: The Beautiful German Alps

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%.

Leave a Reply

Your email address will not be published. Required fields are marked *