Many European markets are down 20% or more so far this year. Some investors are avoiding European stocks entirely. However they may be missing out on some excellent opportunities. Among the various sectors, the utility sector looks attractive for income investors at the current levels.
The STOXX TMI Utilities Index which is comprised of 34 utilities from across Europe is down 27% YTD in US Dollar terms. The index is down over 50% in the past 3 years alone.
The STOXX TMI Utilities Index 5-year performance:
Click to enlarge
Source: STOXX
As European utilities traditionally follow conservative business models and have high dividend payouts, the current stock prices of some of these utilities offer good entry points. To get started, I have listed the 15 utilities below with their current dividend yields and YTD returns:
1.Company: Centrica (CPYYY)
Current Dividend Yield: 5.03%
YTD Change: -8.43%
Country: UK
2.Company:E.ON (EONGY)
Current Dividend Yield: 10.89%
YTD Change: -34.89%
Country: Germany
3.Company: Energias de Portugal (EDPFY)
Current Dividend Yield: 7.42%
YTD Change: -1.89%
Country:Portugal
4.Company: EVN (EVNVY)
Current Dividend Yield: 4.02%
YTD Change: -5.67%
Country:Austria
5.Company: Iberdrola (IBDRY)
Current Dividend Yield: 1.22%
YTD Change: -12.46%
Country:Spain
6.Company: International Power (IPRPY)
Current Dividend Yield: 2.82%
YTD Change: -24.26%
Country: UK
7.Company: National Grid (NGG)
Current Dividend Yield: 5.74%
YTD Change: 13.93%
Country: UK
8.Company: RWE (RWEOY)
Current Dividend Yield: 15.37%
YTD Change: -49.72%
Country: Germany
9.Company: Scottish & Southern Energy (SSEZY)
Current Dividend Yield: 5.39%
YTD Change: 5.95%
Country: UK
10.Company:United Utilities (UUGRY)
Current Dividend Yield: 5.07%
YTD Change: 3.15%
Country: UK
11.Company: Veolia Environnement (VE)
Current Dividend Yield: 11.27%
YTD Change: -48.00%
Country: France
12.Company:Verbund (OEZVY)
Current Dividend Yield: 2.34%
YTD Change: -7.81%
Country: Austria
13.Company: Electricite de France (ECIFY)
Current Dividend Yield: 5.64%
YTD Change: – 32.17%
Country: France
14.Company: Enel (ENLAY)
Current Dividend Yield: 8.58%
YTD Change: -9.88%
Country: Italy
15.Company: Suez Environnement (SZEVY)
Current Dividend Yield: 5.80%
YTD Change: -24.12%
Country: France
Disclosure: Long EONGY, VE and RWEOY
