As the SPDR Portfolio Europe ETF SPEU is down about 32% since the start of the year, it can be a good time to look for stocks that have become undervalued in the European stock market. The SPDR Portfolio Europe ETF seeks to track the performance of the STOXX Europe Total Market Index, which is the European equivalent of the S&P 500 Index here in the United States.
The European equity trap can largely be attributed to the Russia-Ukraine war, as the Kremlin used exports of its oil and energy products as leverage in response to sanctions. On the other hand, investing in European stocks can be a great way to diversify your portfolio, especially after these stocks have fallen.
Here are two high-yielding European stocks poised to rebound from their steep declines.
Koninklijke Philips PHG offers a dividend yield of 6.00% or 96 cents per share per year, with a patchy track record of increasing its dividends. Koninklijke Philips is a diversified global healthcare company operating in three segments which include diagnosis and treatment, connected care and personal health.
The company intends to deliver 19,571,218 shares through the early settlement of forward contracts (concluded under the same share buyback program) and to cancel them as well, which would result in the issuance of 869,743,864 ordinary shares at the end of 2022.
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AstraZeneca PLC. AZN offers a dividend yield of 3.56% or $1.96 per share per year, through semi-annual payments, with a notable history of increasing its dividend once in the past year. AstraZeneca sells branded drugs in several major therapeutic classes, including gastrointestinal, diabetic, cardiovascular, respiratory, cancer and immunology, and the majority of sales come from international markets, with the United States accounting for nearly a third of its sales .
In the first half of 2022, AstraZeneca saw total revenue increase 48% to approximately $22 billion, with growth coming from all diseases and the addition of Alexion.