The FTSE 100 has fallen only 1.81% year-to-date compared with the S&P 500 which is down roughly 16.5% year-to-date. Although the Russia-Ukraine war is causing a tough economic environment for European multinationals, the broader market is still holding up better than the U.S.
Multinationals with a strong presence in the U.S. can benefit from a strong dollar. Earning gains in the dollar translates to gains on their balance sheets.
As the U.S. is facing headwinds of its own, it may be wise to invest in international markets around the world to diversify one’s portfolio. Here are two European companies with dividend-paying stocks.
NXP Semiconductors N.V. NXPI is offering a dividend yield of 1.97% or $3.38 per share annually, utilizing quarterly payments, with a decent track record of increasing its dividends for three consecutive years. NXP Semiconductors is a leading supplier of high-performance mixed-signal products in over 30 countries and after its acquisition with Freescale Semiconductor in 2015, it now has a significant market share in the automotive market.
During the third quarter, NXP Semiconductor repurchased 2.5 million shares for a total cost of $400 million and paid cash dividends of $223 million. Between Oct. 3, 2022 and Oct. 28, 2022, NXP repurchased via a 10b5-1 program an additional 1.77 million shares for a total cost of $260 million.
SAP SE SAP is offering a dividend yield of 1.91% or $2.08 per share conducting annual payments, with an inconsistent track record of increasing its dividends. Founded in 1972 by former IBM employees, SAP provides database technology and enterprise resource planning software to enterprises across more than 180 countries, serving over 440,000 customers, approximately 80% of which are small to medium-sized enterprises.