Equity markets worldwide have become more volatile in recent weeks due to the resurgence of the European debt crisis. Emerging markets are getting hit due to soaring inflation and rising interest rates. Fearing a collapse of the Euro and its impacts to European economies some investors are staying clear of European stocks. This need not be the case. Many of the world’s largest multinationals are based in Europe and earn a large portion of their revenues from outside the European Union.For example, many large British miners, healthcare and consumer companies have the majority of their operations outside of the UK and the European continent. Some of these companies have strong presence in emerging markets such as Brazil, India, Turkey, Indonesia, China, etc. Hence investors can add some of these companies at current levels to gain exposure to emerging markets.
CityWire recently published a list of seven defensive stocks held by UK fund managers in their selection list of investment recommendations. These stocks are listed below with their ADR tickers and current yields:
1.Company:Diageo PLC (DEO)
Current Dividend Yield: 2.51%
Sector:Beverages (Alcoholic)
2.Company:Reckitt Benckiser Group PLC (OTC:RBGPY)
Current Dividend Yield: 3.96%
Sector:Consumer goods
3.Company:AstraZeneca (AZN)
Current Dividend Yield: 7.55%
Sector: Drugs
4.Company:GlaxoSmithKline PLC (GSK)
Current Dividend Yield: 5.09%
Sector: Drugs
5.Company: Scottish and Southern Energy PLC (OTC:SSEZY)
Current Dividend Yield: 3.21%
Sector: Electric Utilities
6.Company:Unilever PLC(UL)
Current Dividend Yield: 4.17%
Sector: Consumer Goods
7.Company:British American Tobacco PLC (BTI)
Current Dividend Yield: 6.26%
Sector: Tobacco
Diageo is the world’s largest spirits group and the owner of many top global brands including Johnnie Walker, Smirnoff, Baileys, Captain Morgan, etc. GSK’s biggest product is the heavily-marketed Advair which generates 18% of its total revenues. Unilever has a strong presence in emerging markets with many popular consumer brands.
Disclosure: No positions
