These global stocks are long-term outperformers with healthy dividends, Barclays says

Published Sun, Mar 27 20227:46 PM EDT

Lucy Handley @in/lucy-handley-b2b0a61a/@lucyhandley

Barclays has identified 10 European stocks to navigate ongoing market volatility, describing them as "strong long-term outperformers" — with increasing dividends. An environment of "dislocation" — when markets are volatile and stock prices are lower than fundamentals would suggest — has created a buying opportunity, according to Barclays' analysts led by Matthew Joyce. The recent market sell-off , sparked by the Russian invasion of Ukraine, means that some stocks are trading at a "larger than usual" discount, he said in a March 23 research note. Barclays' analysts said some dividend stocks present "an opportunity for those investors who can ride out volatility and have a positive medium-term view." Their picks are expected to increase their dividends — payouts companies distribute to shareholders — this year, and already have at least a 2% dividend yield. Read more Goldman Sachs has a bunch of stock picks to play the latest autos trend The Nasdaq is down more than 10% this year. Here are Wall Street's top picks to buy the dip Goldman strategist names two sectors with 'incredibly cheap' stocks after Fed rate hike "Sustainable [dividend] yield has been a strong long-term outperformer," Joyce noted. "We refresh our Sustainable Yield basket in order to provide an up-to-date view of companies that are showing sustainable dividend growth. We look for names that have delivered positive earnings growth last year and are expected to grow their earnings again this year." Stock picks Top choices include Mercedes-Benz , with an estimated 6.9% dividend yield for 2022, French insurance group Axa with an estimated 6.4% and utilities firm Engie , with 7.5%. Barclays also picked oil firm Lundin Energy with an estimated 5.9% dividend yield, Dutch telco KPN with 4.7% and Deutsche Telekom with 4.1%. Also on the bank's list is German delivery firm Deutsche Post , British wealth manager St James's Place and Norwegian conglomerate Orkla , all with an estimated 4% dividend yield for 2022. The bank also chose Shell , with a 3.9% estimated yield.

A view of the Canary Wharf financial district of London.

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Barclays has identified 10 European stocks to navigate ongoing market volatility, describing them as "strong long-term outperformers" — with increasing dividends.