Some of the European governments still own large stakes in private sector companies. Traditionally sectors like utilities, airlines used to have large state ownership. With the bailouts during the financial crisis of 2008-09, some of the banks also are majority-owned by governments.

15 non-financial companies with state ownership of more than 10% are listed below with their current yields. This list comes from a research report produced by Morgan Stanley in March 2010. So ownership figures may have changed. Please do your own research before making any investment decisions.

Energy
1.Company: Eni spa (E)
Current Dividend Yield: 7.77%

2.Company: StatoilHydro (STO)
Current Dividend Yield: 5.39%

3.Company: Fortum (FOJCY)
Current Dividend Yield: 5.78%

Industrials
4.Company: Norsk Hydro (NHYDY)
Current Dividend Yield: 2.84%

5.Company: Metso Corp (MXCYY)
Current Dividend Yield: 7.08%

Materials
6.Company: Yara International (YARIY)
Current Dividend Yield: 2.40%

Telecom
7.Company: France Telecom (FTE)
Current Dividend Yield: 11.67%

8.Company: Deutsche Telecom (DTEGY)
Current Dividend Yield: 8.21%

9.Company: Telenor (TELNY)
Current Dividend Yield: 4.47%

10.Company: Telecom Austria (TKAGY)
Current Dividend Yield: 10.32%

Utilities
11.Company: Enel Spa(ENLAY)
Current Dividend Yield: 8.67%

12.Company: EDF (ECIFY)
Current Dividend Yield: 5.38%

13.Company: GDF-Suez (GDFZY)
Current Dividend Yield: 6.62%

14.Company: EDP Energias Portugal (EDPFY)
Current Dividend Yield: 7.61%

15.Company: Vebund (OEZVY)
Current Dividend Yield: 2.69%

Note: Dividend yields noted are as of September 29, 2011

Source: European Strategy 15 March 2010,  Morgan Stanley Equity Research

Disclosure: No Positions