Investing
The full-scale invasion of Ukraine by Russia on February 24, 2022, was the expansion of a war between the two countries that had begun in February 2014, when disguised Russian troops covertly invaded and took control of the Ukrainian autonomous republic of Crimea. The invasion, which sparked the most significant and deadliest conflict in Europe since World War II, has caused hundreds of thousands of military casualties and tens of thousands of Ukrainian civilian casualties. Fortunately, signs of a ceasefire and a cessation of hostilities could be announced soon following announcements from the recent Munich Security Conference, which Vice President Vance attended and spoke at.
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There have been an estimated 1 million military and civilian casualties since the war started.
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Both sides are weary of the war, and signs indicate that a ceasefire may be coming soon.
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Returning to peace could be huge for some major companies in Europe.
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A new research report from the European team at Jefferies notes that returning to a peacetime footing in Europe could be a tailwind for many of Europe’s top companies. The report, which was written before the conference, noted this:
Media expectations of a potential Ukraine-Russia ceasefire have increased ahead of the Munich Security Conference, the consequences of which could be material for equity markets. We highlight implications by sector and 60+ stocks, which could see incremental interest from investors. Press commentary also suggests the direct dialogue between President Trump and Putin has accelerated ahead of the conference, with both sides reiterating a commitment to end hostilities. Whilst the finer details of what a settlement looks like remain unknown (e.g. security guarantees, territorial borders, access to critical minerals), any tangible news flow suggesting a resolution will be quickly priced in by markets.
We screened the list of 60 stocks the Jefferies team feels will benefit, looking for companies with upside to current pricing levels and that pay out strong and dependable dividends to shareholders. Four European giants look like great ideas now.
Why do we cover European dividend stocks?
Dividend stocks based in Europe provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
BASF
With a rich 6.79% dividend, this European industrial giant is a solid buy at current levels. BASF SE (OTC: BASFY) is a chemical company worldwide.
The company operates through six segments:
- Chemicals
- Materials
- Industrial Solutions
- Surface Technologies
- Nutrition & Care
- Agricultural Solutions
The Chemicals segment provides petrochemicals and intermediates.
The Materials segment offers advanced materials and their precursors for applications and systems comprising isocyanates, polyamides, and inorganic essential products and specialties for plastics and plastics processing industries.
The Industrial Solutions segment develops and markets ingredients and additives for industrial applications, such as:
- Polymer dispersions
- Resins
- Additives
- Electronic materials
- Antioxidants for automotive
- Plastics, paints and coatings
- Electronics
- Energy and resource industries
The Surface Technologies segment provides automotive OEM and refinish coatings, surface treatment, catalysts, battery materials, and precious and base metal services for the automotive and chemical sectors.
The Nutrition & Care segment offers ingredients for consumer goods in nutrition, home, personal care, and technical applications. It serves the food and feed producers, pharmaceuticals, cosmetics, detergents, cleaners, crop protection industries, and the fast-moving consumer goods sector.
The Agricultural Solutions segment provides seeds and seed treatment products, fungicides, herbicides, insecticides, biological crop protection products, and digital farming solutions.
BP
This company is a premier European integrated oil giant, paying shareholders a hefty 5.49% divided. BP PLC (NYSE: BP) engages in the energy business worldwide.
It operates through these segments:
- Gas & Low Carbon Energy
- Oil Production & Operations
- Customers & Products
- Rosneft
BP produces and trades natural gas, offers biofuels, operates onshore and offshore wind and solar power generating facilities, and provides de-carbonization solutions and services, such as hydrogen and carbon capture, usage, and storage.
The company is also involved in the convenience and mobility business, which manages the sale of fuels to wholesale and retail customers, convenience products, aviation fuels, and Castrol lubricants; refining, supply, and trading of oil products; and operation of electric vehicle charging facilities.
In addition, it produces and refines oil and gas and invests in upstream, downstream, and alternative energy companies, advanced mobility, bio and low-carbon products, carbon management, digital transformation, and power and storage areas.
Mercedes-Benz
The German luxury car giant pays investors a strong 8.57% dividend. Mercedes-Benz Group AG (OTC: MBGAF) is an automotive company in Germany and internationally that combines luxury with performance across its full line of models, including luxury sedans, SUVs, coupes, roadsters, convertibles, and more.
It operates through three segments:
- Mercedes-Benz Cars
- Mercedes-Benz Vans
- Mercedes-Benz Mobility
The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and G-Class brands, as well as related spare parts and accessories.
It also provides:
- Financing
- Leasing
- Car subscription and rental
- Fleet management
- Insurance Brokerage
- Mobility services
- Digital services for charging and payment
The company, formerly known as Daimler, changed its name in February 2022. Founded in 1886, Mercedes-Benz has its headquarters in Stuttgart, Germany.
TotalEnergies
This French-integrated giant is another excellent European investment opportunity in the energy sector. It sports a hefty 5.72% dividend and offers a solid total return proposition. TotalEnergies S.E. (NYSE: TTE) is an integrated oil and gas company worldwide.
The company operates through four segments:
- Exploration and production
- Integrated Gas
- Renewables and power
- Refining and chemicals and marketing and services
The company’s Exploration & Production segment involves oil and natural gas exploration and production activities in approximately 50 countries.
The Integrated Gas, Renewables & Power segment engages in:
- Liquefied natural gas (LNG) production
- Shipping, trading, and regasification activities
- Trading of liquefied petroleum gas (LPG), petcoke and sulfur, natural gas, and electricity
- Transportation of natural gas
- Electricity production from natural gas, wind, solar, hydroelectric, and biogas sources
- Energy storage activities; and development and operation of biomethane production units, as well as provides energy efficiency services
The TotalEnergies Refining & Chemicals segment refines petrochemicals, including olefins and aromatics, and polymer derivatives, such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins. It also converts biomass and processes elastomers. This segment also trades and ships crude oil and petroleum products.
Its Marketing & Services segment produces and sells:
- Lubricants
- Bulk fuel
- Aviation and marine fuel
- Special fluids
- Compressed natural gas
- LPG
- Bitumen
- Fuel payment solutions
The company also operates approximately 15,500 service stations.
For almost $14,000 per year in dependable passive income, invest $25,000 in these four stocks
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