Five Deep Value Foreign Stocks For 2020 And Beyond

One of the strategies of investing in equities is to identify and invest in stocks that offer deep value. These are stocks that are currently hated by the market but have strong fundamentals and are trading at deep discounts. They are also cheap relative to their peers and fades. While it may not happen in the next few months it could happen in the next year or so. For example, an investor willing to wait for 5 years will definitely find their investment now yield better returns. With that brief overview below are five foreign stocks that can be considered for 2020 and beyond.

1.Company: Banco de Chile (BCH)
Current Dividend Yield: 4.80%
Country: Chile

Dividend Withholding Tax Rate for US Residents: 35%

Chile has been hit by protests since October. For the most past the protests have subsided now. Protesters demanding better social justice including against high inequality brought chaos and severe impact to the Chilean economy. The equity market collapsed with some stocks falling 50% or more. However Chile has low debt and is the world leader in copper exports. Moreover Chile has the most dynamic economy in all of Latin America. Once the current situation improves by April next year or so stocks will soar. So investors can pick up a few stocks on the cheap now.

2.Company: Westpac Banking Corp (WBK)
Current Dividend Yield: 7.21%
Country: Australia

Dividend Withholding Tax Rate for US Residents if held in Qualified Retirement Accounts: 0%

Dividend Withholding Tax Rate for US Residents if held in Regular Accounts: 30%

Australia’s banking stocks are in the dumps now. Westpac in particular is involved in a money-laundering scandal that has decimated its stock price further. In general, Australia has one of the highest dividend yields in the world. The current issues will be thing of the past in next few years and investors would be happy they got into Westpac at current levels. Currently the dividend yield is 7.21%.

3.Company: Pampa Energia (PAM)
Current Dividend Yield: N/A
Sector: Electric Utility
Country: Argentina

Dividend Withholding Tax Rate for US Residents: 0%

Argentina’s economic problems led to a sudden plunge of 48% one day for S&P Merval Index in August this year. Though some stocks have slightly recovered, Pampa is still off by over 50%. As an electric utility Pampa offers deep value now.

4.Company: Continental AG (CTTAY)
Current Dividend Yield: 4.14%
Sector:Auto Components
Country: Germany

Dividend Withholding Tax Rate for US Residents: 26.375%

Continental issued multiple earning warnings this year and the company also announced bleak forecasts for the next 5 years. The stock has fallen heavily from its peak and seemed to have reached bottom at current levels. Parts for regular autos and tires are not going to go away despite the rise of electric vehicles.

5..Company: Ultrapar Participacoes SA (UGP)
Current Dividend Yield: 2.35%
Sector: Oil, Gas & Consumable Fuels
Country: Brazil

Dividend Withholding Tax Rate for US Residents: 15.0%

The oil and gas sector is one of the most hated sectors in global equity markets now. Brazil is on the recovery mode and Ultrapar offers attractive value now at under $6 a share. Early last year the stock was going for about $13.One of the areas the company operates is in gasoline retailing. As with the above point, this business will continue to exist for years to come.

Note: Dividend yields noted above are as of Dec 20, 2019. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long BCH, WBK and CTTAY


  1. Good point. I have updated the post with the rates. Thanks for your comment. In the future I will automatically include withholding rates in such posts since it is important.

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