Ten European Consumer Goods Stocks To Consider

The S&P 500 is up 19.9% year-to-date as of September 20th. Many of the European markets are also up by double digits YTD but they are still lower the U.S. market. Here are the YTD returns of major European indices:

  • France’s CAC 40: 15.5%s
  • Germany’s DAX Index: 14.0%
  • Spain’s IBEX 35 Index: 12.3%
  • UK’s FTSE 100: 11.8%

Despite the strong rises European stocks especially stocks in the consumer goods sector have more room to run. This is because of the economic recoveries currently underway in the continent. Unlike in the past no new sovereign debt crisis or other crises are on the horizon. The economies of Portugal, Ireland, Italy, Greece and Spain (PIGGS) are not the abyss and are actually in transition mode. The banking sector in these and other countries are in much better shape than before. Economic growth will lead to higher job growth and consumption. Consumer goods companies are bound to profit from this growth. Another advantage held by European multinational firms is that they have a strong presence in former colonies and generate a significant portion of their revenue from those markets.

The chart below shows the 5-year return of the Euro STOXX Consumer Goods Index:

Click to enlarge



Source: STOXX

Ten European consumer goods stocks are listed below for consideration:

1. Company:adidas AG (ADDYY)
Current Dividend Yield: 1.61%
Country: Germany

2.Company:Unilever NV (UN)
Current Dividend Yield: 3.34%
Country: The Netherlands

3.Company:Nestle SA (NSRGY)
Current Dividend Yield: 3.10%
Country: Switzerland

4.Company: Danone SA (DANOY)
Current Dividend Yield: 2.43%
Country: France

5. Company:Henkel AG (HENKY)
Current Dividend Yield: 1.37%
Country: Germany

6.Company:Heineken NV (HEINY)
Current Dividend Yield: 1.69%
Country: The Netherlands

7. Company:Coca Cola HBC AG (CCH)
Current Dividend Yield: 6.06%
Country: Switzerland

8. Company:Compagnie Generale des Etablissements Michelin SCA (MGDDY)
Current Dividend Yield: 2.85%
Country: France

9. Company:Diageo PLC (DEO)
Current Dividend Yield: 2.24%
Country: The UK

10. Company:Koninklijke Ahold NV (AHONY)
Current Dividend Yield: 3.29%
Country: The Netherlands

Note: Dividend yields noted are as of Sep 20, 2013. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long HENKY

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