14 Foreign Blue Chip Stocks With 5%+ Dividends

 

The Fed model compares the forward earnings yield of the stock industry with 10-year government bond yields.  The model assumes that investors view stocks and bonds as competing assets and will acquire whichever asset has a greater yield, according to an write-up in Quarterly Critique of Economics and Finance May 2009 issue.

 

Income investors will always be in a dilemma above whether or not to buy fixed income securities this kind of as bonds, or to get stocks with competitive yields. Companies that pay generous dividends tend to carry out properly in an era of mild inflation.

 

Far more than half of the total international stock industry capitalization is outside of US borders.  The reason to have foreign dividend-paying stocks is for income and growth from economies globally, specially in an environment that attributes a weakening US dollar.

 

Prospective foreign companies usually come to the US for financing, and that signifies a better amount of investment opportunities for income investors in ADRs.  I went above all foreign firms listed on US exchanges (NASDAQ and NYSE). The following are ADRs with dividends higher than 5%, industry caps better than billion, and forward P/E lower than 15:

 

 

Name (Symbol)

Forward P/E (1yr)

Yield

Market Cap

MAGYAR TELEKOM (MTA)

ten

19%

four.17B

ENERSIS S A (ENI)

13

11%

637.41B

TELECOM CP N Z (NZT)

13

10%

2.05B

Partner Comm (PTNR)

3

eight%

two.94B

DEUTSCHE TELE AG Ads (DT)

13

7%

68.09B

CPFL ENERGIA SA Advertisements (CPL)

13

7%

9.94B

FRANCE TELECOM Advertisements (FTE)

ten

6%

70.66B

HELLENIC TELE Ads (OTE)

9

6%

7.74B

BP PLC (BP)

9

6%

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180.71B

ECOPETROL SA (EC)

15

six%

52.17B

MOBILE TELSYS OJSC (MBT)

10

five%

18.84B

TOTAL S.A. (TOT)

9

five%

142.22B

PORTUGAL TELECM SGPS (PT)

14

5%

11.07B

TELEFONICA SA (TEF)

ten

5%

132.75B

 

Not surprisingly, these businesses are either in the telecom sector or energy related industries. They yield lots, and a lot of have some reliable fundamentals to vouch for as well.

 

The US telecom industry is mature with quite little growth out there.  Nonetheless, there are nonetheless more opportunities for foreign telecom businesses, specially in emerging markets.

 

Magyar Telekom (MTA) gives telecommunication companies in Hungary and internationally.  Partner Communications (PTNR) operates a mobile telecommunications network in Israel.  Hellenic Telecommunications (OTE) is a telecommunications companies provider in Greece, Albania, Bulgaria, and Romania.

 

Mobile Telesystems (MBT), the Russian mobile telecom company, became a mobile/land-line provider this week with the acquire of COMSTAR-UTS.  This offers it an entry into broadband – one particular of the country’s underdeveloped markets.  Russia has vast stores of oil and gold, the world’s 3rd largest currency reserves, and a reasonably reduced net debt-to-GDP ratio.

 

Telecom Corp. of New Zealand Ltd. (NZT), Deutsche Telekom (DT), FRANCE TELECOM (FTE) and Telefonica SA (TEF) are all in developed markets.  Portugal Telecom (PT) is investing heavily in a fiber network and Tv service in Portugal and in 3G &amp 3.5G technology in Brazil.

 

Enersis S.A. (ENI) engages in electrical electrical power generation in Argentina, Brazil, Chile, Colombia, and Peru.  CPFL Energia S.A (CPL) serves residential, industrial, and commercial clients in Brazil.  Ecopetrol S.A. (EC) is a crude oil and gas giant in Columbia.

 

Name (Symbol)

Yield

WISDOMTREE EX-FINL (DOO)

12%

WISDOMTREE PACFC EQ (DNH)

10%

WISDOMTREE DEFA (DTH)

9%

WISDOMTREE PAC TTL (DND)

9%

WISDOMTREE EUR TDIV (DEB)

eight%

WISDOMTREE INTL LC (DOL)

eight%

WISDOMTREE DEFA (DWM)

7%

WISDOM TR EM MKT (DEM)

7%

VANGRD EUROPEAN ETF (VGK)

6%

 

An investor who missed the 10 very best overall performance days out of 110,000 trading days would have had a portfolio that was 69% much less important than a passive portfolio.  Avoiding the 10 worst days would have resulted in a portfolio that was 337% more useful than a passive investment, according to an write-up titled “Black Swans in Emerging Markets” in Journal of Investing Summer time 2009 problem.

 

When a crisis strikes, the folks who sell initial get the greatest price tag, if they can move ahead of a wave of forced sales.  If you are not a trader or can’t time the marketplace, the very best way is to find sound-yielding businesses and stay invested.

 

Basic metrics this kind of as P/E and dividend yields are as well narrowly focused to stand alone as a single measure of a stock.  Inconsistent dividends in the previous mean that the dividend yields cannot be counted on.  By combining various approaches of valuation, you can get a far better view of a firm.

 

Disclosure: I have prolonged position on CPL.   Data is from Yahoo Finance as of December four, 2009.

 

To understand far more about dividend investing, be sure to check out our stock trading course!

 

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