As the SPDR Portfolio Europe ETF SPEU is down about 32% year-to-date, it may be a good time to hunt for stocks that have become undervalued in the European stock market. The SPDR Portfolio EuropeETF tries 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 U.S.
The Russian-Ukraine war has caused a pitfall in European equities, as the Kremlin has used the exports of its oil and energy products as leverage in response to sanctions. After the beatdown these equities have taken, investing in European equities can be a great way to diversify one's portfolio.
Here are two high-yielding European stocks poised to bounce back from their steep declines.
Koninklijke Philips PHG is offering a dividend yield of 6.00% or 96 cents per share, with an inconsistent track record of increasing its dividends. Koninklijke Philips is a global healthcare company with three segments that include diagnosis and treatment, connected care, and personal health.
AZN is offering a dividend yield of 3.56% or $1.96 per share annually, through semi-annual payments, with a track record of increasing its dividends once in the past year. AstraZeneca sells branded drugs across several major therapeutic classes, including gastrointestinal, diabetes, cardiovascular, respiratory, cancer, and immunology, and the majority of sales come from international markets, with the United States representing close to one-third of its sales.
AstraZeneca saw total revenues increase by 48% to around $22 billion in the first half of 2022, with growth coming from all disease areas and the addition of Alexion.