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European blue chip stocks offer great income opportunities - Barron's

Published 01/01/2017, 19:01
Updated 01/01/2017, 19:10
© Reuters. A Shell logo is seen reflected in a car's side mirror at a petrol station in west London
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By Jarrett Renshaw

NEW YORK (Reuters) - European blue-chip stocks Nestle (S:NESN), Royal Dutch Shell (L:RDSa), Novartis (S:NOVN) and Unilever (L:ULVR) are expected to be among the best income-producing stocks of 2017, Barron's said in a report.

Many European companies offering dividends finished in the red, hurt by the rise in the U.S. dollar, Barron's said, noting that valuations have gotten more reasonable and dividend yields have grown.

The European companies were listed as part of Barron's annual list of best income ideas, which this year looked at 10 different sectors, including electric utilities, master-limited partnerships and municipal bonds.

In the U.S. market, electric utilities such as Duke Energy Corp (N:DUK) and real estate investment trusts (REITs) including Simon Property Group (N:SPG) offer good income-generating opportunities in 2017, Barron's reported. Utility Sempra Energy (N:SRE) and REITs Boston Properties (N:BXP) and Equity Residential (N:EQR) also made the Barron's list.

© Reuters. A Shell logo is seen reflected in a car's side mirror at a petrol station in west London

Treasuries, telecoms and master-limited partnerships are less appealing, Barron's said.

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