UBS Screens for 26 Safe Cyclical Yield Stocks as Europe Improves
UBS screens for cyclical companies in Europe that have healthy balance sheet and offer relatively safe dividends.
- Says Cyclicals have had “a pretty tough time both of late and since 2007”
- Highlights relative dividend yield for cyclicals vs defensives is at a decade high, commodities not the core driver
- Says overall net debt for corporates supportive, well below where it sat in 2009
- Highlights div. payout ratio below the 1990s and 2003 recessions (this includes all sectors, even Energy)
- Says list sports avg dividend yield of 4.6% for 2015, 4.9% for 2016
- Names include: BHP Billiton, Zurich Insurance, HSBC, Swedbank, Rio Tinto, Bpost, Edenred, SEB, BBVA, Allianz, Skanska, BAE Systems, Hydro, IMI, Siemens, M&S, SKF B, Schneider Electric, BMW, Generali, G4S, Volvo B, Rolls-Royce, Adecco, Randstad, Nokia