5 dividend stocks to buy as European index crushes S&P 500
After years of underperformance, the STOXX Europe 600 is mauling the S&P 500 this year, and it is a trend that could continue for a while. The large European index is already up 14% this year, versus the S&P 500’s 2.52% gain. A new report from Deutsche Bank cites several positive reasons for the current outperformance.
The 11% margin the European bourse has over the S&P 500 two months into the trading year is the biggest difference in 25 years. Deutsche Bank points to a very convincing quantitative easing strategy that begins this month, improving macroeconomic data, and strong equity inflows that have pushed markets higher despite the turmoil in Greece.
These five blue-chip companies are suitable any long-term growth portfolio:
ASML Holding N.V. (NASDAQ: ASML) designs, manufactures and services semiconductor processing equipment. The consensus price target is $105.95. The stock closed way above that on Friday at $107.68.
ING Groep N.V. (NYSE: ING) recently announced a 1.8% dividend for the first time since the 2008 financial crisis. The consensus price target is $13.59. Shares closed well above that on Friday at $14.83.
Nokia Corp. (NYSE: NOK) recently announced a deal with T-Mobile to accelerate the deployment of small cell units that operate in the unlicensed radio bands. Investors are paid a 2.0% dividend. The consensus price target is $9.46 and shares closed on Friday at $8.01.
Novartis A.G. (NYSE: NVS) is the world’s biggest drugmaker by sales and is also the manufacturer of the fourth top-selling oncology drug - Gleevec. Investors receive a 2.7% dividend. The consensus price target is $103.57 and closed Friday at $102.40.
Royal Dutch Shell PLC (NYSE: RDS-A) has survived the oil pricing plunge as good as or better than any other major integrated stock. Investors are paid a solid 4.7% dividend. The consensus price target was not posted. Shares closed Friday at $65.37. (