To buy European stocks from the UK you need a stockbroker like IG or Saxo that has access to European exchanges. The two thing you need to watch out for when buying stocks in EUR are the exchange rates and currency exposure.
All brokers charge an FX fee when you convert GBP into another currency for foreign purchases, Interactive Brokers is generally the cheapest for FX rates.
One other thing to consider is if Sterling will be worth more that Euros in the future and you may lose out on currency exposure. If this is a concern check out our analysis of expert Pound to Euro forecasts here.
Should you invest in European stocks?
Investor sentiment on European equities these days is not exactly bullish, but there are some that UK investors are getting excited about, Rheinmetall AG for instance, is a German stock that is looking healthy at the moment.
But despite the negative macro headlines, not all European stocks are falling. In fact, some are still performing strongly. Do not confuse economic trends and stock markets movements. The two can move independently for a time period.
- Related reading: How to buy shares in any company from any international stock market.
Five European stocks worth a look…
Here we highlight five European stocks that have produced good returns in the past. These companies operate globally, thus offering stability in revenue growth. Some of these stocks are considered ‘recession proof’ because their products sell even during economic downturns.
Moreover, these stocks pay dividends too. With dividends you can still grow your portfolio over time.
- LVMH Moet Hennessy Louis Vuitton (MC)
- Novo Nordisk (NOVOB/NVB in US)
- Unilever NV (ULVR UK)
- Kone Oyj (KNEBV)
- Essity (ESSITY A)
LVMH Moet Hennessy Louis Vuitton (MC)
LVMHΒ is the world’s uber-luxury company. The firm holds a diverse portfolio of high-end brands including Louis Vuitton, Christian Dior, Marc Jacobs, Bvlgari, Hennessy, and Moet & Chandon. It sells across 70 countries. Recently, LVMH’s major shareholder – Bernard Arnault – was ranked third on the Forbes’ Global Rich List, with a fortune exceeding $100 billion.
Novo Nordisk (NOVOB/NVB in US)
Novo Nordisk is a major pharmaceutical company based in Denmark. Its annual revenue exceeds DKK 110 billion (US$16 billion, 2018) and is a highly profitable health company. Its products treats diabetes and sell across 70 countries. Just recently, the company announced a 10% rise in its second quarter operating profits, which sent its share to new long-term highs. Pharmaceuticals stocks are often ‘recession proof’ – simply because consumers still need healthcare products in good and bad times.
Unilever NV (ULVR UK)
Unilever is a British-Dutch firm and one of the world’s largest consumer product companies. This firm produces, markets, and sells a wide range of food, home and personal care products. Some of Unilever’s leading brands include Dove, Lipton, Magnum, Omo and Rama. Investors like this stock tremendously because it is viewed as a high-quality defensive stock. Its products are sold in both developed and emerging economies – giving it the best of both worlds: Stable income and good growth.
Kone Oyj (KNEBV)
‘Kone’, in Finnish, means machine or device, which literally tells you what this firm does: Engineering. You may even have seen its name on elevators or escalators. While Kone’s annual sales is only 9 billion (Euro), Kone’s products are sold in more than 50 countries, from Singapore to Spain to Canada. The diverse nature of its earnings is an attractive point.
Essity (ESSITY A)
The last spot on the list is the Swedish firm, Essity. The firm derives its name from ‘Essential’ and Necessity’. For many customers, Essity’s products are indeed indispensable. The firm operates across three major product segments, personal care, consumer tissue and professional hygiene. Its annual sales in 2018 was 118.5 billion (SKro, about US$12 billion) and earned about 10.5 billion (Skro). Sales geography is approximately 150 countries; Asia is Essity’s biggest region by revenue. So it is a highly diverse and profitable consumer company.
Compare Brokers For Buying European Stocks
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| Visit Broker Capital at risk |
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