Deutsche Bank has published their top 7 European stock picks for 2012.From an article in Forbes magazine:

Deutsche Bank’s analysts’ thesis is that even if the eurozone economy goes to hell until it gets its sovereign debt in order, the firms it picked aren’t going away because of their solid fundamentals, niche markets, brand strength and, most of all, broad international exposure.

The Top European stock picks are listed below with their ADR tickers and current yields:

1.Company: SAP AG (SAP)
Current Dividend Yield: 1.44%
Sector: Software
Country: Germany

2.Company: Royal Dutch Shell (RDS.A)
Current Dividend Yield: 4.73%
Sector: Integrated Oil & Gas
Country: The Netherlands

3.Company: SKF (SKFRY)
Current Dividend Yield: 3.76%
Sector: Construction & Agricultural Machinery
Country: Sweden

4.Company: William Demant Holdings (WILYY)
Current Dividend Yield: N/A
Sector: Medical Equipment maker
Country: Denmark

5.Company: Telenor ASA (TELNY)
Current Dividend Yield: 4.23%
Sector: Telecom
Country: Norway

6.Company: AMEC (AMCBF)
Current Dividend Yield: 3.31%
Sector: Construction
Country: UK

7.Company: Swatch Group (SWGAY)
Current Dividend Yield: 1.53%
Sector: Watch Maker
Country: Switzerland

Note:Dividend yields noted are as of Dec 7, 2011

Among the seven stocks, I would prefer to own Telenor, Royal Dutch Shell and SKF with the oil major as a long-term holding.

Disclosure: No Positions