The banking sector was one of the hardest hit sectors during the global financial crisis. However the sector has rebounded strongly in most countries as the global economy recovered from the abyss of those dark days of the crisis. Banks wrote off billions of dollars of bad debt and cleaned up their balance sheets. Many weaker banks failed or were acquired and the better ones not only survived but have become bigger and stronger since. We can safely assume that the worst is over the sector and it is an opportune time to load up on banking stocks. For example, most European banks are in a better shape now than before and have the resources to weather another crisis, although a crisis of the magnitude of the recent financial crisis is unlikely to occur anytime soon. Hence investors looking to gain some exposure to this sector or higher dividend yields can consider some of the foreign bank stocks. Obviously not all banks are out of the woods yet and some are still struggling. Germany-based Commerzbank AG (CRZBY) is one such bank which is still far away from getting back to “normal” . Despit.e a 1:10 reverse in April the bank’s ADR share price is still down since the split. So its important to be selective
Ten randomly-selected foreign bank stocks are listed below with their current dividend yields for consideration:
1.Company: Banco Santander- Chile (BSAC)
Current Dividend Yield: 3.07%
Country: Chile
2.Company:Royal Bank of Canada (RY)
Current Dividend Yield: 4.03%
Country: Canada
3.Company: HSBC Holdings PLC (HBC)
Current Dividend Yield: 4.29%
Country: UK
4.Company: Westpac Banking Corp (WBK)
Current Dividend Yield: 5.61%
Country: Australia
5.Company: Credicorp Ltd (BAP)
Current Dividend Yield: 2.01%
Country: Peru
6.Company: Nordea Bank AB (NRBAY)
Current Dividend Yield: 3.62%
Country: Sweden
7.Company: DBS Group Holdings Ltd(DBSDY)
Current Dividend Yield: 6.76%
Country: Singapore
8.Company: Societe Generale (SCGLY)
Current Dividend Yield: 1.15%
Country: France
9.Company: Australia and New Zealand Banking Group Ltd (ANZBY)
Current Dividend Yield: 5.04%
Country: Australia
10.Company: Deutsche Bank AG (DB)
Current Dividend Yield: 2.00%
Country: Germany
Note: Dividend yields noted are as of Oct 2, 2013. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.
Disclosure: Long SCGLY, RY
