Two European Utilities with High Yields

One of the few sectors that are worth looking into during this bear market is the utility sector.This is because just like food, utilities are a necessity even during a bear market.

While its possible that people might use less energy these days, still most will use the normal energy needs on a day-to-day basis. This provides a constant flow of revenue for the utilities. Besides many governments provide help to those who cannot afford to pay their utility bills based on many eligibility rules. Once utilities used to stable long-term value stocks that provided decent growing dividend. Nowadays that is not the case. These stocks are as volatile as any other stock. The sense of stability and consistency that came with this sector is gone. This year utilities seem to fall in synch with the overall market. I believe that the S&P; 500 utilities are down over 30% year-to-date. This is very unique since utilities usually stay strong in any market.

However for investors that are willing to nibble in this market there are couple of European stocks that pay high dividends now. Stock price may erode thru the rest of the year if the overall markets fall further.

1.Company Name: National Grid PLC
Ticker: NGG
Country: UK
Dividend Yield : 7.62%

2.Company Name: Veolia Environnement
Country: France
Dividend Yield : 7.72%

Veolia used to trade in the 90s. Now it goes for just above $24. Same caution is warranted with this stock. NGG seems to be holding better compared to VE. But both these stocks offer excellent dividends as mentioned above.

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