Foreign stocks generally tend to pay higher dividends due to tax policies, a tradition of returning the most profit to investors, etc. While the S&P 500 yields about 2%, many overseas markets have yields in excess of 3%. Hence investors looking for higher yields or diversification may want to consider investing in high-quality foreign stocks paying dividends.
The table below lists 25Â foreign stocks traded on the New York Stock Exchange and paying over 5% in dividends:
[TABLE=882]
Note: The above list excludes Canadian stocks
Among the financial stocks, Australia’s Westpac Banking Corporation (WBK) offers a better bet than others since the country’s banking system is stable and Australian banks also benefit from the emerging Asian markets.In the telecom space, Spain’s Telefonica (TEF) with a yield of 7.12% looks attractive due to its high exposure to the growing Latin American market. Oil stocks Enersis(E), YPF SA (YPF) and TOTAL S.A.(TOT) are all trading near their 52-weeks after the recent runup. Hence investors can consider adding them at lower levels.
Disclosure: Long STD
