Novo Nordisk has increased its dividend every year since 2005 and pays dividends semi-annually. “There are several interesting late stage pipeline assets and we think newsflow around these plus Kesimpta’s launch in MS (we are interactive brokers forex review 43% ahead of consensus by 2025) should mean investors are willing to take a fresh look.” “The company has the ability to grow despite the biosimilar erosion of key franchises,” writes UBS analyst Michael Leuchten (Buy).

• Consumer staples, financials, and energy stocks make up the largest portions of the fund’s portfolio.
• It is therefore fair to say that while major European stock indices have underperformed, some individual stocks have been great choices for investors who wish to invest in Europe’s economy.
• And the market’s best European stocks are one such store of value-priced diversification.
• There are also many other options, such as ETFs based on asset classes, such as the WisdomTree Europe SmallCap Dividend Fund (DFE).

With this in mind, here are 10 of the best European stocks to buy for 2022 and beyond. While value is certainly front and center, this group includes some growth plays as well. What’s more, each stock provides a healthy dividend yield that can help investors ride out any short-term turbulence; indeed, several names featured here are members of the European Dividend Aristocrats. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.

Exchange-Traded Funds (ETFs)

For years, wealth advisors have told clients to invest a portion of their funds overseas to diversify portfolios and mitigate risk. These are some of the best European stocks you can buy for bargain prices and decent income, too. The company plans to grow by developing its portfolio in higher-growth areas, divesting struggling brands and accelerating its expansion in the U.S., China and India.

The company generates the majority of its sales from powdered and liquid beverages, pet care, nutrition products, prepared dishes and milk products and ice cream. During the first nine months of 2021, Nestle’s organic sales grew 7.6%, due in part to 6% internal growth and a 1.6% increase in pricing. The company is guiding for full-year organic sales growth of 6%-7%, a 17.5% operating profit and what etoro is all about increasing EPS. ASML ended the fiscal 2021 with total revenues of €18.6 billion ($21.1 billion) representing 33% year-over-year growth. For fiscal 2022, the company is guiding for full-year sales growth of around 20%. The company is the only manufacturer of leading-edge extreme ultraviolet (EUV) lithography machines, which it supplies to Samsung, Taiwan Semiconductor (TSM) and Intel (INTC).

Europe remains a world leader in many areas and has specialized in luxury goods and top-class cars, chemicals, and high-end engineering. Although Ferrari, Nestle and Richemont (owner of Cartier) will need little instruction, the others are also major companies. ASML manufactures micro chips and is probably the most important company you have not heard about. There is a likely chance the U.S. dollar will depreciate in the coming months, she adds.

• This fund tracks the performance of the FTSE Developed Europe All Cap Index, which measures the investment return of stocks issued by companies located in the major markets of Europe.
• The first one is to open an account with a broker that has access to European stocks.
• Novo Nordisk’s revenue rose 13% year-over-year during the first nine months of 2021, fueled by market share gains in diabetes care and 49% growth in obesity care sales.
• Equally as important, any dividends received in Swiss francs are going to be automatically converted to U.S. dollars and deposited in your brokerage account as a net spread (in light of the currency conversion).
• Swiss food/beverage giant Nestle (NSRGY, $117.93) is the world’s largest packaged food company.
• The main goods traded between the EU and other parts of the world were machinery and vehicles, as well as other manufactured goods, furthermore chemicals and food and drink.

In rare cases, your custodian might be able to show the quoted value of the shares in Swiss francs and allow you to hold multiple currencies in your account so that the dividends also arrive in Swiss francs. This method is the most direct, though often the least familiar, to American investors who have only owned domestic securities. For the sake of illustration, let’s say that you want to own shares of a large chocolate company in Switzerland. Another drawback is that programs involving American Depository Receipts might be modified or changed in ways you did not anticipate. But, if this happens, you may be able to leave the program and take direct possession of the underlying foreign stocks. However, doing so might involve payment of a fee to a broker and the depository bank.

The annual payout on the ADR shares rose 13% in 2021 to 87 cents per share. At a December investor event, ABB raised its 2021 sales and profit targets. The company also announced plans to spin-off its electric vehicle charging business in an initial public offering (IPO) sometime in the first half of 2022. The company exness company review plans to capitalize on a U.S. construction market boom by expanding its North American franchise. Ashtead Group invested $1.2 billion in its business in the first six months of its fiscal year, added 58 new North American locations and planned another $320 million in bolt-on acquisitions in its third quarter.

Millicom International Cellular S.A. (NASDAQ:TIGO)

With over 1 million financial instruments to choose from, you can use Freedom’s quality mobile app or reach out to the customer service team via live chat, phone or email. You can pay with Visa, Mastercard or bank draft, and there are currently zero commissions for 30 days for new clients. The D Account allows you to save your money with a 3% per year interest rate.

How much of my portfolio should I invest in European stocks?

It seems like a reasonable enough choice since the 2 US exchanges (NASDAQ and NYSE) are the two biggest exchanges in the world and the combined market cap of US stocks is somewhere around the $30 trillion mark. However, turbulent conditions in the US markets have now got an unprecedented number of people wondering if they should invest in European stocks too. You may also consider having one broker for your European stocks and one for your UK ones. Indeed some UK brokers such as interactive investor allow you to hold any dividends in that currency. This is particularly attractive for those looking to reinvest dividends or keep a certain currency exposure. Maintaining a home country bias by investing mostly in U.S. large-cap stocks can leave blind spots in your total investment portfolio, Loewengart says.

It is widely believed that the leading European stocks have the potential to provide solid value to investors who have a long-term investment horizon and are focused on leveraging the current uncertainty in the market. Numerous European companies are aggressively pursuing long-term structural trends like net-zero greenhouse gas emissions, which provide investors an opportunity to go long at a very cheap valuation. Investors, particularly those new to investing in common stocks, may mistakenly limit the reach of a company to the country in which it is headquartered. A substantial number of U.S. firms already generate significant sales and profits internationally, and many others are looking to expand abroad.

There are high quality European stocks that have performed very well

DBEU employs a blended strategy of investing in a mix of value and growth stocks of primarily large cap companies. TUR is designed to track the MSCI Turkey IMI 25/50 Index, a broad-based index composed of Turkish equities. It is one of the only ETF options available for gaining exposure to this emerging market economy. Industrials, materials, and consumer staples are the sectors receiving the largest allocations within the fund.

Many of these will be in English so there is no excuse not to have a look for any creative accounting. Many investors rely on European indexes provided by FTSE or MSCI as their benchmark for performance and returns. There are five direct benchmarks that measure more than half of the European Union’s gross domestic product, including the German DAX 30, French CAC 40, British FTSE 100, Italian FTSE MIB 40 and the Spanish IBEX 35. Since France and Germany carry much of the European influence, the CAC and DAX represent much of the European economy, says Stuart Michelson, a finance professor at Stetson University in DeLand, Florida. In this article, we will take a look at the 15 top performing European stocks so far in 2023. To see more such companies, go directly to 5 Top Performing European Stocks So Far in 2023.

European ETFs: The Easiest Way to Invest in Europe

The two companies have been research partners since 2019 on multiple drug candidates. AllianceBernstein revealed some of its favorite stocks in the country, including two new names on its radar. The consumer price index was flat on an annual basis in September, data from the National Bureau of Statistics showed.

Oil and gas stocks made the biggest gains, by 1.2%, as crude prices rose sharply. Viatris’ share price has plunged by nearly 50% over the prior three-year period, thanks to the never-ending price erosion and margin compression in small-molecule generics. Additionally, the market appears concerned about the company’s high debt load, which topped $18 billion at the end of Q2.