The four tests include having a market cap greater than $1 billion, cash flow greater than the market's mean, shares outstanding in excess of the market's average and trailing 12 months sales that are at least 1.5x greater than the market's mean. The stocks I am recommending meet all of these criteria. And they have strong yields.
One stock is France-based Sanofi (SNY - Get Report). This company enjoys a position of real strength in the pharmaceutical industry, where it is one of the largest. It has a strong pipeline of products it is developing and a strong lineup of existing products. And its yield is 3.74%.
The second recommendation is Royal Philips (PHG - Get Report), based in the Netherlands. This is a diversified technology and consumer products company whose product lineup includes light bulbs, kitchen gadgets, televisions and electric shavers, among others. This is a company with solid positions in many markets. Its yield is 3.00%.
Not all of Europe is on its economic knees, and not all European companies are struggling. These companies are well worth a close look.At the time of publication, Reese and his clients were long Sanofi.
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