Monthly Archives: June 2018

Cheniere: ‘Financial Engineering Gone Crazy’

Short seller Jim Chanos of Kynikos Associates offered his latest short at the SALT conference in Las Vegas today: Cheniere Energy (LNG).

Bloomberg News

One of the big problems for Cheniere is that there has been no increase in demand for liquefied natural gas despite an increase in supply. “The great LNG demand dream has been a pipe dream, but supply keeps coming,” Chanos says.

Chanos summed up the bull case on Cheniere. That it’s a financing story, not an energy story. That there’s no commodity risk because of take-or-pay contracts. That there will be “big out-year utilization.”

The reality, however, is quite different, Chanos argues.Cheniere argues that it’s asset’s should have a 100 year life span, far above the 20+ of refiners. They also argue that there will be 100% utilization, when refiners typically have 85%, Chanos said. And it will be hard for Cheniere to turn a big profit by shipping LNG to Europe at current prices.

But even if you buy that,Cheniere is still “crazy expensive” compared to peers.Chevron (CVX), Royal Dutch Shell (RDS.A) and Australian firm Woodside trade between 5 and 6.3 times EV/EBITDA. Cheniere: 11.4 times. And while Chevron, Royal Dutch Shell and Woodside will be paying down debt, Cheniere’s will be growing its own, Chanos argued. “This is financial engineering gone crazy,” Chanos says. “[It’s] extremely skewed to the short side.”

Shares of Cheniere have jumped 6.2% to $34.75 today, while Chevron rose 1% to $102.12, and Royal Dutch Shell advanced 0.3% to $50.76.

3 Top Phablet Stocks to Buy in 2017″

A phablet is simply a large smartphone — a phone-tablet. The term came about a few years ago as smartphones began to grow in size and some became nearly indistinguishable from smaller tablets.

Phablets account for a large portion of smartphone sales. They accounted for as much as 25% of sales in 2015, and their share is expected to grow to 32% by 2020, according to IDC estimates. And with that growth, there are three top stocks most likely to benefit: Apple (NASDAQ:AAPL), Samsung (NASDAQOTH:SSNLF), and Universal Display (NASDAQ:OLED).

The back of a black Apple iPhone 7 Plus.

Image source: Apple.

Apple’s big business

It’s a no surprise Apple heads the list of top phablet stocks. The company sold 50.7 million iPhones in its fiscal second quarter of 2017, and the company earned about 63% of its total revenue in the quarter from those sales.

At least part of the company’s solid quarter can be contributed to Apple’s largest phone, the iPhone 7 Plus.”We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus,”Apple CEO Tim Cook said in a press release.

And it’s not just Cook who views Apple’s largest phone as an asset. The iPhone 7 Plus was the world’s second best-selling phone in the first quarter of this year, surpassed only by the iPhone 7, according to Strategy Analytics.

There’s reason to believe that the rest of 2017 will bode well for Apple and its larger phones as well. Several rumors have surfaced that Apple could launch a larger 5.8-inch phone (up from the 5.5-inch iPhone 7 Plus) as one of its new iPhone 8 models this fall. Investors may remember that when Apple bumped up the screen sizes for its iPhone 6 and 6 Plus, it sparked a sales boom a few years ago. There’s no guarantee of seeing that for the next iPhone of course, but a larger, no-bezel iPhone could certainly spur its own upgrade cycle demand.

Samsung scalable success

Samsung was one of the early leaders in the phablet space and overall, things have worked out tremendously well. The company’s larger phones have been a key ingredient in keeping pace with Apple’s popular, albeit smaller, iPhones.

Samsung hit a few speed bumps with its smartphone sales in 2016, mainly from less-than-stellar Galaxy S6 demand and the infamous recall of its Galaxy Note 7 — which was, er, prone to catching on fire. But things appear to be turning around for the phablet maker. Samsung’s new Galaxy S8 and S8+ phones have impressive 5.8-inch and 6.2-inch displayswith no-bezel screens.

Undersea picture of a whale and diver with the Galaxy S8+ overlaid on top of it.

Image source: Samsung.

Samsung made more than 50% of its 2016 revenue from its IT and mobile communications segments, and the new S8 and S8+ phablets should go a long way toward helping to keep mobile revenue up for 2017. A report from South Korean website The Investor says Samsung has already racked up 5 million global sales since the devices went on sale a month ago.
It will still be a couple of months before we find out how well the S8 lineup has performed for Samsung, but some sales estimates for the devices are projected to hit 60 million for the full year, up from 52 million for last year’s S7 lineup.

Universal Display’s larger-than-life licensing fees

Universal Display licenses the research and technology it develops for OLED displays and sells some of the raw materials used to make the displays as well. The company’s biggest customers are LG and Samsung, and the majority of its sales come from smartphones and tablets.

Universal has a lucrative licensing deal with Samsung that’s worth $90 million for 2017, up from $75 million last year, and LG is currently locked into a licensing agreement with the company until 2022.

A woman tapping her finger on a large smartphone.

Image source: Getty Images.

Universal is just coming off a fantastic first quarter, with revenue up more than 87% and net income skyrocketing from $1.9 million to $8.5 million year over year.The company’s licensing-fee revenue, which doesn’t include the current deal with Samsung, totaled $7 million in the quarter, up 32% year over year.

The company’s CFO, SidneyRosenblatt, expects much more growth from OLED market as well, noting in a press release that management believes the market is “poised to grow faster” than previously expected. The company believes the expanding OLED segment will translate into more licensing revenue and sales, which should boost 2017 revenue by 30% to 40% compared with last year.

Investors looking for the top phablet stocks for 2017 should give these companies strong consideration, and remember that even though large phones have been on the market for a while, there’s still plenty of room in this segment for more growth.

How a Facebook Deal Made Prologis $300 Million on a Teardown

All eyes were on Facebook Inc. and its ambitious expansion plans when the social-media giant bought a 21-building campus in Menlo Park, California, from Prologis Inc. Turns out the 2015 deal turned a tidy profit for the warehouse landlord — and made its other properties in the area more valuable.

Prologis paid $110 million for the site about a decade ago, Chief Executive Officer Hamid Moghadam said in an interview Wednesday at Bloomberg’s headquarters in New York. Facebook ultimately had to double its initial offer for the complex, to about $400 million. Now the warehouses are being torn down to build housing and more work space for the social-media company, Moghadam said.

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Hamid Moghadam

Photographer: Akio Kon/Bloomberg

The anecdote illustrates how tight the market has become for space in fast-growing urban areas, where residential and office demand is muscling out warehouse and manufacturing facilities. That’s benefiting industrial landlords like Prologis that are sitting on well-situated properties and requiring tenants like Facebook to pay top dollar as they expand. The Menlo Park deal alone took about 1.1 million square feet (102,000 square meters) of industrial space off the market in the San Francisco Bay area, Moghadam said.

“The supply of space is going down, and that’s creating more pricing power,” he said.

In many of the markets where it operates, Prologis — the largest industrial real estate investment trust — is also looking to get more out of the land it owns. The company is building the first multistory warehouse in the U.S. in Seattle and has plans for another in San Francisco. Such properties may also make sense in West Los Angeles, New York and Miami, Moghadam said.

For more on Facebook, check out the Decrypted  podcast:

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Samsonite shares slump to 9-month low after being hit by a short-seller attack

Shares in Samsonite fell to a 9-month low on Thursday after a short seller issued a report saying the world’s largest luggage maker had questionable accounting practices and poor corporate governance.

Blue Orca Capital said the owner of the Tumi brand had concealed slowing growth through debt-fuelled acquisitions and had used accounting methods to massage earnings and inflate profit margins.

“Samsonite is a mid-level brand masquerading as a premium luxury player,” the short seller said in its report. “Samsonite is more sensibly compared to a peer group of mid-tier brands.”

Samsonite, which has a market value of $5.6 billion, has requested a share trading halt pending a statement on the matter and will not comment further at this time, an executive told Reuters by telephone on condition of anonymity.

The company’s spokespeople did not answer an email or telephone calls seeking comment.

Blue Orca said it valued Samsonite at HK$17.59 a share, 43 percent below its last traded price of HK$30.70.

Prior to the late morning trading halt, Samsonite stock had fallen as much as 12.2 percent to HK$29.90, the lowest since Aug. 24. That compared with a 0.1 percent gain in the benchmark Hang Seng Index.

Samsonite’s shares hit a record high of HK$38.60 on April 4 on strong sales of Tumi-branded goods and market expectations of further improvement in the luxury retail sector.

Among 14 analysts that cover Samsonite, the current average recommendation on the shares was “buy,” Thomson Reuters data showed. The breakdown was nine “strong buy” or “buy,” three “hold” and two “sell” or “strong sell.” The mean price target was HK$38.07.

Blue Orca was launched earlier this month by Soren Aandahl, a Texas-based short-seller who previously co-founded Glaucus Research, which attracted attention for its attacks on several targets in Asia-Pacific.

Glaucus’ most recent target was Australia-listed fund manager Blue Sky Alternative Investments, whose shares have fallen 76 percent since Glaucus claimed in late March that Blue Sky had over-valued assets and exaggerated its performance. Blue Sky said the claims were incorrect and misleading.

Last week, Samsonite posted an 18.6 percent year-on-year increase in profit at $43.9 million for the January-March quarter, with net sales rising 21.1 percent to $888.2 million.

Samsonite said its gross profit margin was 56.5 percent at the end of March, from 55.3 percent a year earlier, due to a higher proportion of net sales coming from the direct-to-consumer channel and increased sales of Tumi-branded goods.

Electra Price Up 12.6% Over Last Week (ECA)

Electra (CURRENCY:ECA) traded 8% higher against the U.S. dollar during the 1-day period ending at 22:00 PM ET on June 20th. In the last week, Electra has traded 12.6% higher against the U.S. dollar. Electra has a market capitalization of $34.87 million and $128,874.00 worth of Electra was traded on exchanges in the last 24 hours. One Electra coin can now be purchased for $0.0014 or 0.00000020 BTC on exchanges including Fatbtc, Novaexchange, CoinFalcon and CryptoBridge.

Here’s how other cryptocurrencies have performed in the last 24 hours:

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SpaceChain (SPC) traded 5.5% higher against the dollar and now trades at $0.0238 or 0.00000351 BTC. Bulwark (BWK) traded up 7.1% against the dollar and now trades at $0.79 or 0.00011670 BTC. Denarius (DNR) traded 36.1% lower against the dollar and now trades at $0.67 or 0.00009936 BTC. Virta Unique Coin (VUC) traded up 2.4% against the dollar and now trades at $0.0008 or 0.00000012 BTC. VIP Tokens (VIP) traded flat against the dollar and now trades at $0.0006 or 0.00000007 BTC. Powercoin (PWR) traded down 8.1% against the dollar and now trades at $0.0000 or 0.00000000 BTC. NamoCoin (NAMO) traded 31.9% lower against the dollar and now trades at $0.0001 or 0.00000002 BTC.

Electra Coin Profile

Electra is a PoW/PoS coin that uses the NIST5 hashing algorithm. It launched on March 17th, 2017. Electra’s total supply is 26,636,760,329 coins and its circulating supply is 25,769,603,776 coins. Electra’s official Twitter account is @ElectracoinECA. The Reddit community for Electra is /r/Electra_Currency and the currency’s Github account can be viewed here. Electra’s official website is electraproject.org.

Electra Coin Trading

Electra can be bought or sold on the following cryptocurrency exchanges: CryptoBridge, Octaex, CoinFalcon, Fatbtc, Novaexchange, Coinhouse and Cryptopia. It is usually not possible to purchase alternative cryptocurrencies such as Electra directly using US dollars. Investors seeking to acquire Electra should first purchase Bitcoin or Ethereum using an exchange that deals in US dollars such as Changelly, Coinbase or GDAX. Investors can then use their newly-acquired Bitcoin or Ethereum to purchase Electra using one of the exchanges listed above.

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Highlights From GM's Sales in China and What Trade Tensions Could Mean for Investors

General Motors (NYSE:GM) has proven its global retail prowess, and nowhere is that more evident than in the world’s largest automotive market: China. General Motors was early to seize the Chinese market, compared to crosstown rivals such as Ford Motor Company (NYSE:F)and Fiat Chrysler, and its results in March were again solid. Let’s take a look at last month’s highlights and what recent trade tensions between the U.S. and China could mean for GM and its investors.

Better than it sounds

General Motors and its joint ventures delivered 352,346 units in China last month for a 2% gain over the prior year. Sales toward the end of the first quarter did slow a bit — sales through the first three months were up 8% compared to the prior year, to just over 986,000 units. However, GM’s 2% gain last month doesn’t do the sales volume justice: It was good enough to set a GM March record in China and was more than the 296,341 units GM sold in the U.S. last month.

GM's Chevrolet Volt in front of ancient Chinese buildings.

Image source: General Motors.

Here’s the brand breakdown: Cadillac again posted an incredible month in China, with sales jumping a staggering 46% from the prior year to over 18,000 units. Much of that was driven by sales of the XT5 luxury SUV, which continues to be the brand’s best-selling model. XT5 sales increased 36% to more than 6,100 units. Sales of the XTS luxury sedan and ATS-L luxury sport sedan also popped 65% and 32%, respectively.

Buick’s Excelle GT sedan helped drive the brand’s sales 4% higher to an impressive 92,007 units. Sales of the Excelle GT alone hit nearly 24,000 units, and sales of the Verano family jumped 13% to over 15,000 units. Chevrolet deliveries also recorded an impressive 35% gain to 47,017 units, while GM’s larger-volume brands, Baojun and Wuling, weighed on overall results with declines of 5.4% and 7.9%, respectively.

GM has long held a significant edge over Fordin China, and that gap has only widened recently. Ford’s sales dropped 6% last year in China, compared to GM’s 4.4% gain. Moreover, it wasn’t just year-over-year gains where the gap remains obvious: GM sold more than 4 million units in China last year compared to Ford’s 1.2 million. On the bright side, for Ford investors, the folks at the Blue Oval are preparing to double down, but investors of both need to be at least aware of mounting trade tensions.

Trade tensions

GM’s 2% gain in March won’t jump off the paper, though it was a great month in the grand scheme of things. But trade tensions could spook the market in the near term. After placing tariffs on steel and aluminum imports last month, President Trump also took a shot at China’s automotive trade policies. China currently requires foreign automakers to enter joint ventures with local automakers to produce vehicles in the country — to avoid a 25% tariff on vehicles brought into China — and prohibits the foreign entity from owning more than half of the partnership.

There’s definitely pressure from the U.S. for China to lower its tariff on imported vehicles, but the reality is, most foreign automakers are already producing vehicles in China through joint ventures, and some have renewed their joint venture contracts for the next two to three decades. More important, perhaps, is that foreign automakers would prefer business as usual, or a reduction in tariffs, without uncertainty of trade policies interfering with near- or long-term strategies — as GM points out in its obligatory “work together” statement:

“We support a positive trade relationship between the U.S. and China, and urge both countries to continue to engage in constructive dialogue and pursue sustainable trade policies. We continue to believe both countries value a vibrant auto industry and understand the interdependence between the world’s two largest automotive markets.”

As sales in the U.S. peak, it’s important for foreign automakers to capitalize on China’s volume while optimizing as much as possible for profits. Investors would be wise to keep an eye on trade tensions between the U.S. and China, but automakers with established joint ventures shouldn’t be too concerned — Ford has imported less than 2% of its vehicles into China through February — as they rely very little on importing vehicles into China. And if China ends up making tariffs more favorable, it’ll only add to the options and possible strategies available for foreign automakers.

Hold Tata Sponge; target of Rs 1130: Centrum

Centrum’s research report on Tata Sponge

We maintain our Hold rating on Tata Sponge (TSIL) with a revised TP of Rs1130 as we see valuations fair with historic high spreads having marginal downside risks and surplus cash on books expected to be deployed as CWIP in the steel plant capex over the next few years. Q4 earnings were very strong YoY led by better pricing and solid volumes. TSILs spreads in sponge iron business have continued to improve but sustenance of the same at current high levels for long periods of time is difficult and hence we continue to build our annual estimates well below the current run-rate.

Outlook

We continue to value the company at 5x FY20E EV/EBITDA and value the surplus cash at 75% as this cash is expected to be deployed as CWIP for the steel plant over next few years. We revise our TP to Rs1130 and maintain Hold. Key downside risks are fall in sponge iron prices and higher coal costs while upside risks are higher volumes and better spread.

For all recommendations report,click here

Disclaimer:The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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Target Rolls Out Its Own Line of Cheap Wine

Target Corporation (NYSE:TGT) announced a new line of cheap wines that you can purchase in its stores.

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The company is advertising the initiative as a series of $5 bottles of “wine that will make any occasion shine.” The selection includes five wine blends that Target claims were crafted with premium, California-grown grapes.

As of Sunday, Sept. 3, you will be able to buy one of these flavors, which include a Chardonnay, featuring lush tropical flavors that goes well with artisanal cheese and freshly-baked bread.

Other flavors include the Pinot Grigio, which also offers tropical fruit flavors along with a vibrant citrus profile, perfect for the summer. The Moscato has delicate aromas with peach and melon flavors that pair well with fresh berries.

The Cabernet Sauvignon offers a deep cherry flavor with hints of oak that you can enjoy with a nice piece of steak. Finally, the red blend includes berry and cherry flavors with a touch of spice.

“We’re out to give our guests even more reasons to love Target—including exclusive products they can’t find anywhere else,” says Jeff Burt, senior vice president of food and beverage. “And we think they’re going to love California Roots—these wines are just the right blend of incredible quality and amazing value that guests can only get at Target.”

TGT stock fell 1% Monday.

Maribel Perez Wadsworth named publisher of USA…

USA TODAY has named Maribel Perez Wadsworth as its publisher, the second woman to hold the title. Wadsworth, a Cuban-American, is the first person of colorto serve as publisher.

Wadsworth, 45, has served as the flagship news organizations associate publisher since November 2017 when publisher John Zidich announced his upcoming retirement. Zidich officially retired earlier this month.

She will remain president of the USA TODAY NETWORK, which has 109 local media properties, a position she has also held for the last six months. In 2016, Wadsworth became the chief transformation officer for Gannett, which owns USA TODAY and the USA TODAY NETWORK, after serving as the organization’s chief strategy officer.

In recent months, Wadsworth has overseen the hiring of several key positions at USA TODAY. Editor in chief Nicole Carroll joined the news organization in March; she had been editor of The Arizona Republic and azcentral.com. Last week, Jeff Taylor, top editor at The Indianapolis Star and Midwest regional editor for the network, was named USA TODAYs executive editor for news. He will officially begin those duties next week.

I am feeling really, really good about some of the key leaders we are putting in place (and) I am very excited about the direction we are going, Wadsworth said. We are still in the process of looking at the realignment of resources from a news perspective to really focus on our priority areas. We have to continue to evolve and make sure that we are really focused on the biggest things, the most important work.

Wadsworth has proven she has the experience to foster ever-evolving, innovative collaborations between USA TODAY and the USA TODAY NETWORK, said Robert Dickey, president and CEO of Gannett.

Maribels passion for creating great experiences for our audiences as well as her commitment to constant innovation make her the ideal leader for USA TODAY, he said in a statement. In her more than two decades with Gannett, Maribel has gained a unique perspective on the strong and important relationship between USA TODAY and our local Network properties and their unmatched ability to together drive nationwide journalistic impact.

A native of Miami, Wadsworth joined Gannett more than 20 years ago after graduating from the University of Miami. She began her career at the Associated Press, then began covering agriculture at the Rockford (Ill.) Register Star. Subsequently, at The News-Press in Fort Myers (Fla.), Wadsworth was a reporter and held several editor positions including managing editor for more than three years until July 2009.

Wadsworth joined Gannetts corporate team in 2009, spearheading digital efforts and audience development.

Early in her career, as the only Spanish-speaking reporter at the Register Star, she covered Rockfords migrant worker community and a business district of Spanish-speaking entrepreneurs. I remember thinking that is part of why I need to be doing what Im doing, because I can help to bring out some of those important stories that maybe are going uncovered otherwise, Wadsworth said.

As an editor in Fort Myers, a project called Summer of Hunger led to the community providing school children lunches during the summer. Those things always stick with you because its in those moments that what you are doing really matters and it’s making a difference in peoples lives.

More recently, Wadsworth has especially been proud of the investigative reporting done by The Indianapolis Star, along with The Lansing State Journal, into sexual abuse within USA Gymnastics, which culminated with the sentencing two months ago of former team doctor Larry Nassar for up to 175 years in prison.

I know that that because of the efforts of the USA TODAY NETWORK and the IndyStar specifically, Larry Nassar will have no more victims ever again, thats really powerful, Wadsworth said. We must be committed I know I amto continue to support exactly that work.

USA TODAY is the No.1 newspaper in America with a daily circulation of 3.1 million.USA TODAY sitesaverage more than 98 million unique visitors a month.

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.

3 European Stocks to Buy for Big-Time Dividends

The Brexit, the Quitaly, generally high unemployment, the ripping apart of the E.U., low stagnating growth, double- and triple-dip recessions — you name it, the Old Country is suffering from it. With that in mind, European stocks certainty aren’t at the top of investor’s lists when it comes hot investment destinations. After all, would you really want to plunk a pile of hard-earned cash on European stocks right now, with all of this mess going on?

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The answer should be a resounded yes.

Sure, Europe does have its warts. But you know what else it has? Some of the largest multinationals on the planet. The truth is, they get just as much — if not more — of their revenues from sources outside of Europe. And sales continue to be good, as they have looked towards emerging Asia for their sales. It’s just that the domestic economy is pretty darn bad.

But in that “badness,” investors can find opportunities — namely in some top European dividend stocks. The yield on the broad and multinational-filled Vanguard FTSE Europe ETF (NYSEARCA:VGK) is a whopping 3.5%.

The Best Investments for 2017

In the end, European dividend stocks are a tremendous value to income seekers. And here are three of those European stocks to buy today.

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European Stocks to Buy for Big Dividends: Diageo (DEO)

European Stocks to Buy for Big Dividends: Diageo (DEO)investorplace.com/wp-content/uploads/2011/03/deo1-150×150.jpg 150w, investorplace.com/wp-content/uploads/2011/03/deo1-65×65.jpg 65w, investorplace.com/wp-content/uploads/2011/03/deo1-100×100.jpg 100w, investorplace.com/wp-content/uploads/2011/03/deo1-80×80.jpg 80w” sizes=”(max-width: 185px) 100vw, 185px” />Dividend Yield: 3%

What do Johnnie Walker, Smirnoff, Captain Morgan and Guinness all have in common? They happen to be some of the biggest brands in their respective alcohol categories and have billions in annual global sales. They also happen to be owned and produced by Diageo plc (ADR) (NYSE:DEO). All in all, DEO’s brand range includes 14 of the top 100 premium distilled spirits brands and seven of the top-20 premium spirits brands worldwide.

That gives DEO a massive global footprint that isn’t really affected by what happens in Europe. In fact, Diageo has spent much of the last few years adding capacity and brands in far-off locales such as India and China to gain from the growing consumer markets in these places. These areas continue to see strong case volumes, sales and brand retention among drinkers. Meanwhile, new organic, natural flavors and varied promotions have helped turned the tide in slowing North American sales.

What it really means is that DEO stock remains a powerhouse of the global booze industry that continues to churn put healthy cash flows — cash flows that have trickled down to investors as big-time dividends.

Since its founding in 1998, Diageo has steadily paid a dividend semi-annually. That dividend has varied, as European dividend stocks base their payouts on percentages of profits, not a steady amount.

DEO currently yields 3%.

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European Stocks to Buy for Big Dividends: Novo Nordisk (NVO)

European Stocks to Buy for Big Dividends: Novo Nordisk (NVO)investorplace.com/wp-content/uploads/2010/10/novo_nordisk_logo-150×150.jpg 150w, investorplace.com/wp-content/uploads/2010/10/novo_nordisk_logo-65×65.jpg 65w, investorplace.com/wp-content/uploads/2010/10/novo_nordisk_logo-100×100.jpg 100w, investorplace.com/wp-content/uploads/2010/10/novo_nordisk_logo-80×80.jpg 80w” sizes=”(max-width: 185px) 100vw, 185px” />Dividend Yield: 2.6%

When it comes to European stocks of multinationals, the healthcare sector is where the content really shines. And shining brightest of all is Novo Nordisk A/S (ADR) (NYSE:NVO).

NVO has plenty of exposure to various therapies and drugs, but where it really makes its money is from diabetes. Diabetes has become a worldwide epidemic with new instances rising every year. Increased sedentary lifestyles, diets high in fatty processed foods and other cultural reasons have made the diseases more prevalent in our global society. The International Diabetes Federation (IDF) predicts that at least one in 10 adults will have diabetes by 2030.

While that’s bad for society, it’s good for NVO stock’s bottom line. Novo first created an insulin product back in the 1920’s and is now the leading producer of the medicine. The firm has a 47% share when looking at the total insulin market worldwide.

Perhaps equally as impressive, NVO commands a 46% share when looking at modern and next-generation insulin.

5 Stocks to Buy for December

That dominating position in a medicine that is required for diabetes sufferers to live has resulted in serious cash flows and profits over it history. And with rates of diabetes continuing to grow across the globe and not just in Europe, investors can sit back and collect the firm’s high 2.6% dividend.

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European Stocks to Buy for Big Dividends: Eni (E)

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Dividend Yield: 5.9%

When we think of the major oil companies, names like Exxon Mobil Corporation (NYSE:XOM) dominate the conversation. However, Europe is full of some big-time energy stocks that pump out major dividends as well. One of the best happens to be Italy’s Eni SpA (ADR) (NYSE:E).

Yes, Italy is in the middle of the death throes of its Quitaly movement to leave the E.U., but in the real end, that shouldn’t affect E very much. Eni is nearly as big as XOM and features a stable of assets –up-, mid- and downstream — across the globe. It’s one of the main oil producers in the low-cost Middle East and traditional elephant fields have dominated its cash flows and production profiles for years.

But Eni still has plenty of growth in its tank.

The firm continues to find insane amounts of natural gas in offshore Mozambique. These fields have the ability to provide plenty of long-term revenues for the energy major as the world transitions to a natural gas future. It’s basically becoming the Exxon of Europe in its shift to natural gas.

More importantly, management has been cautious in spending extra CAPEX on other projects to get these fields pumping ASAP.

In the end, Eni is a great all-around energy stock. But because of the Quitaly B.S., shares can now be had for a monster 5.9% dividend yield. This is one European dividend stock value that needs to be in your portfolio.

As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.