Many companies raise the dividends on their common stock year over year.There are some stocks whose dividends have more than doubled in six years. In this article lets review ten such international stocks and see how they have fared so far this year.
For this study, the stocks were analyzed using the following criteria:
1. Use only Non-Financial stocks.
2. Dividends must have doubled or more than doubled in the past 5 years .
3. Stocks that cut or reduced dividends in those five years do not qualify.
4. All stocks must be foreign stocks.
5. Evaluate only common stock.
6. Exclude tax and currency fluctuations.
5-Year Historical Dividend Growth Rate
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Magyar Telecom has the best 5-year dividend growth rate of 52.45%.The second best dividend grower is Encana (ECA) from Canada at 45.28%.
Ten Dividend Doubled Stocks Year-To-Date Change and Current Dividend Yield
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Note: Data listed above are thought to be accurate at the time of posting.Do your own research before making investment decisions.
Analysis:
1. The above list is dominated by Telecom and Energy (oil and gas) stocks. While the oil and gas stocks are to be expected due to rising prices in the past few years, the telecom sector is a surprise.
2.MTA and NZTCY have current high dividend yields. New Zealand stocks are known for their high dividend payouts. So the lone Kiwi stock listed in the US made it to the list.Magyar Telecom is a consistent stable performer from Hungary. The other telecom stocks TEF and PT have above average dividend yields as well.
3. Due to rising crude oil and natural gas prices in the past years, energy stocks have had tremendous runs.Except the Canadian oil and gas producer Encana, the Spanish company Repsol and Italian Enel have high current dividend yields .
4. The French utility Veolia has a decent dividend at 4.16% but the stock is down over 50% this year. Probably a good entry point at the current price.
5.Though Sasol is classified as an oil and gas stock, this South African major has interests in the chemical business also.Sasol is now in its growth phase with the company announcing a R70B expansion plans for the next three years. The projects will be undertaken in countries like Nigeria, Qatar, Papua New Guinea.
6. British American Tobacco, BTI is a UK based company engaged in the tobacco business with brands like Dunhill, Kent, Lucky Strike, etc. BTI is an international tobacco play.Recently BTI expanded operations in Turkey after a major acquisition there. Some of its competitors are the American Phillip Morris International (PM) , Imperial Tobacco(ITYBY), etc. With a decent yield, BTI is a long-term growth stock.
The above ten non-financial stocks are worth watching thru the rest of the year and in the future due to the attractive dividend yield and past dividend increases.
Disclosure: None
