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Lulupoopsalot (77.37)

Three European stocks to re-energize your dividend portfolio

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June 02, 2012 – Comments (0) | RELATED TICKERS: TOT , E , BP

 

 

So let's get a few things straight.  The Euro crisis is real.  The potential exit of Greece is very real.  The idea that you can buy European energy companies at levels close to those seen 15 to 20 years ago is mind boggling to me, but that's exactly what's happening.  The following three stocks all pay above a 5% yield and have solid earnings power with P/E's at or below 7.  Additionally, they are trading below their 200 day moving averages and are well diversified in both geography and operations.

Total S.A. is trading at $42.39 with a P/E of 6.43.  Though based in Europe, France to be exact, it has operations in more than 130 countries which provide a terrific amount of diversification in its earnings.  It pays a 7.17% yield and and is trading well below its 200 day moving average of 54.44.  Over the past year TOT has found support in the $41-$42 range and I expect that support to hold yet again.

Eni S.p.A.is an Italian based energy company with operations in 85 countries.  It's areas of focus are exploration, production, refining, marketing, and construction.  It is currently trading at 38.11 with a P/E of 7.05 and a yield of 7.26%.  It's trading well below its 200 day moving average of $45.48 and if it continues to go lower look for it to bounce off the long term support levels of around $34-$36.

BP is a name that needs no introduction to those of us in the United States.  It's slide during the Gulf of Mexico crisis from $60 to $27 was overdone to say the least.  Now trading at $36.76 it has recovered around 40% since the slide but there is still lots of upside that has been temporarily put on hold due to the Eurozone crisis.  Currently it's P/E is an unbelievable 4.82 and it's paying a yield of 5.22%.  BP has found support in the $35-36 range over the last year.

Overall these three stocks offer great value, healthy dividends, and are bargain priced below their 200 day moving averages but near long term support levels.  I will be looking closely at these stocks over the coming weeks for an optimal entry point based on the news flow out of Europe.

 

 

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