5 European Dividend Aristocrats Offer Huge Growth and Income Potential With Diversification

Novartis

This is among the world’s largest pharmaceutical drug makers by sales and remains a top international pick across Wall Street. Novartis AG (NYSE: NVS) researches, develops, manufactures and markets health care products in Switzerland and internationally. The company operates through two segments.

The Innovative Medicines segment offers prescription medicines for patients and physicians. It also provides cardiovascular, ophthalmology, neuroscience, immunology, hematology and solid tumor products.

The Sandoz segment develops, manufactures and markets finished dosage forms of small molecule pharmaceuticals to third parties. It also provides protein-based or other biotechnology-based products, including biosimilars, as well as biotechnology manufacturing services and anti-infectives, such as active pharmaceutical ingredients and intermediates primarily antibiotics. Novartis has a license and collaboration agreement with Alnylam Pharmaceuticals to develop, manufacture and commercialize inclisiran, a therapy to reduce LDL cholesterol.

Novartis stock investors receive a 3.66% dividend. The BofA Securities price target of $113.50 compares with a $107.13 consensus target and Wednesday’s closing print of $96.47.

Sanofi

This is another top pharmaceutical company in Europe trading at very reasonable levels. Sanofi S.A. (NYSE: SNY) engages in the research, development, manufacture and marketing of therapeutic solutions in the United States, Europe and elsewhere.

Sanofi provides specialty care products, including human monoclonal antibodies; products for multiple sclerosis, neurology, other inflammatory diseases, immunology, rare diseases, oncology and rare blood disorders; medicines for diabetes; and cardiovascular and established prescription products. It also supplies poliomyelitis, pertussis and Hib pediatric vaccines, as well as influenza, adult booster, meningitis and travel and endemic vaccines.

In addition, Sanofi offers allergy, cough and cold, pain, digestive and nutritional products. Other products included daily body lotions, anti-itch products, moisturizing and soothing lotions, and body and foot creams, as well as powders for eczema. It also has various pharmaceutical products and vaccines in the development stage.

Investors receive a 3.46% dividend. The BofA Securities price target is $65, and Sanofi stock has a consensus target of $63.59. Shares closed on Wednesday at $55.80.

SAP

This is a top way to invest in the booming software segment. SAP S.E. (NYSE: SAP) provides enterprise application software products worldwide.

The company’s SAP S/4HANA offers software capabilities for finance, risk and project management, procurement, manufacturing, supply chain and asset management, and research and development. SAP SuccessFactors offers solutions for human resources, including HR and payroll, talent and employee experience management, and people and workforce analytics. Its spend management solutions cover direct and indirect spend, travel and expense and external workforce management.

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