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European Stocks Are Left In Shambles From Russia-Ukraine War: It May Be Time To Buy These 2 High Yielders

Published 25/09/2022, 13:40
© Reuters.  European Stocks Are Left In Shambles From Russia-Ukraine War: It May Be Time To Buy These 2 High Yielders

As the SPDR Portfolio Europe ETF (ARCA: SPEU) is down roughly 32% year-to-date, it may be a prime moment to hunt for stocks that have become undervalued in the European stock market. The SPDR Portfolio Europe ETF seeks to track the performance of the STOXX Europe Total Market Index, which is the European equivalent to the S&P 500 Index here in the U.S.

The pitfall in European equities can largely be attributed to the Russia-Ukraine war, as the Kremlin has used the exports of its oil and energy products as leverage in response to sanctions. On the other hand, investing in European equities can be a great way to diversify one's portfolio, especially after the beatdown these equities have taken.

Here are two high-yielding European stocks poised to bounce back from their steep declines.

Koninklijke Philips (NYSE: PHG) is offering a dividend yield of 6.00% or 96 cents per share annually, with an inconsistent track record of increasing its dividends. Koninklijke Philips is a diversified global healthcare company operating in three segments which include diagnosis and treatment, connected care, and personal health.

The company intends to have 19,571,218 shares delivered through the early settlement of forward contracts (entered into as part of the same share repurchase program) and to cancel those as well, which would result in 869,743,864 issued common shares at year-end 2022.

Also Read: Putin's Security Forces Detain Over 1,300 Civilians For Protesting Against Russia Escalating Ukraine War

AstraZeneca PLC. (NASDAQ: NASDAQ:AZN) is offering a dividend yield of 3.56% or $1.96 per share annually, through semi-annual payments, with a notable track record of increasing its dividends once in the past year. AstraZeneca sells branded drugs across several major therapeutic classes, including gastrointestinal, diabetes, cardiovascular, respiratory, cancer, and immunology, and the majority of sales come from international markets with the United States representing close to one-third of its sales.

In the first half of 2022, AstraZeneca saw total revenues increase by 48% to roughly $22 billion, with growth coming from all disease areas and from the addition of Alexion (NASDAQ:ALXN).

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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