Dividend Investors Should Love These 5% Yielding European Stocks

The U.S. stock market averages recently touched a new all-time high. As stock prices are rising, dividend yields are falling, since price and yield are inversely related. This leaves income investors in a tough spot, which leads many, including myself, to believe that bargains are hard to find among domestic stocks. However, this isn't necessarily the case when it comes to global stocks. European equities are far more attractive than U.S. stocks right now, because stocks there are far cheaper than their U.S. counterparts. Of course, there is a reason for this, which is that economic growth remains very weak throughout Europe, due to a number of factors including the financial crisis in Greece.

But there remain a number of highly profitable European companies that have a global reach, and as a result are still generating strong cash flows. Even better, they pay very high dividend yields, in many cases far higher than the yields available in the U.S. Specifically, I believe income investors should love GlaxoSmithKline (NYSE:GSK), BP plc (NYSE:BP), and Royal Dutch Shell (NYSE:RDS.B).

Source: Seeking Alpha

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