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8 High-Quality, Dividend-Paying European Stocks Trading Cheaply

8. France Telecom (FTE)

Company profile: France Telecom, with a market value of $32 billion, is the leading telecommunications services provider in France, but also provides services in several other neighboring countries, including Spain and Poland. Business in France accounts for about half its revenue, with wireless services making up 46% of that, while other international revenue is about 19% of its total.

Dividend Yield: 14.86%

Investor takeaway: It has a forward P/E of 7.1, and a current P/E of 6.4, versus the 23.4 of its industry peers. S&P has it rated "buy" with a $19 price target, which is a 50.7% premium to its current price. Its shares are down 20% this year, but have a 10-year, average annual return of 4.2%. Analysts give its shares one "buy" rating, one "buy/hold," and three "holds," according to a survey of analysts by S&P.

7. Nestle (NSRGY)

Company profile: Nestle, with a market value of $188 billion, is the largest food and beverage company in the world. Through its various subsidiaries, it offers a wide range of branded nutrition, health, and wellness products. The Swiss company's product portfolio includes the internationally recognized brands Nestle, Nescafe, Perrier, Gerber, Poland Spring and Pure Life. Nestle's Nutrition unit acquired Jenny Craig from its founders in 2006. It recently agreed to buy Pfizer's (PFE) baby food business for $12 billion.

Dividend Yield: 2.48%

Investor takeaway: It has a forward P/E of 5.5 versus the 21.3 current P/E of its industry peers. Its shares are down 0.9% this year, but have a 15-year, average annualized return of 13.5%. Analysts give its shares one "strong buy" rating and three "holds," according to a survey of analysts by theStreet.

6. Credit Suisse Group (CS - Get Report)

Company profile: Credit Suisse, with a market value of $25 billion, is an international financial services company, active in securities and capital markets, private banking and insurance.

Dividend Yield: 4.09%

Investor takeaway: It has a forward P/E of 5.8 versus its industry's current 8.9. Its shares are down 18% this year and has recently been trading at or near a 52-week low. Over 10 years, the shares have an average annual loss of 1%. Analysts give its shares two "strong buy" ratings and two "holds," according to a survey of analysts by TheStreet. S&P, which has it rated "hold," said the company "has seen steady net inflows in its wealth management business, but the investment banking business has been hurt by recent headwinds. More aggressive cost cutting and restructuring will help alleviate some pressure on the bottom line, but may cause near-term distractions and pressure revenues, in our view."

5. Siemens (SI)

Company profile: Siemens, with a market value of $72 billion, is a leading electronics and electrical engineering company serving industrial and energy companies and also has a health care products division.

Dividend Yield: 3.54%

Investor takeaway: It has a forward P/E of 8.9 and a current 13.4 versus its peers' 14. Its shares are down 13% this year but have a 10-year, average annual return of 4.9%. Analysts give its shares three "buy" ratings, one "buy/hold," and three "holds," according to a survey of analysts by S&P. Those same analysts estimate Siemens will earn $8.51 per share this year and $9.23 next year, or 8% earnings growth.
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SI $0.00 0.00%
ABB $20.69 -1.57%
COV $106.71 -1.26%
CS $14.28 -1.92%
NVS $74.33 -2.34%


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