Five Foreign Industrial Stocks

The S&P ADR Index is composed of foreign securities that can be traded in the US. It comprises of 188 companies from 24 countries. One of the sector represented in this index is Industrials. In this post, lets review five of the ten industrial stocks that are part of the index.

1.ABB Ltd (ABB) is a Switzerland-based company that provides automation technologies to utility and other industrial customers. The current dividend yield is 2.89% and the P/E is 9.12. ABB is one of the highly profitable companies in its industry with a net margin of 12.76%.

2.The German company is Siemens AG (SI) engaged in electrical and electronics engineering. SI pays a dividend of 3.87% and the P/E ratio is 9.23. The average annual dividend growth is about 10% over the past 5 years.

3. Empresa Brasileira de Aeronautica SA (Embraer) (ERJ) is an aircraft maker in Brazil. The stock is down over 58% in the last 52 weeks. The current yield is 6.89%.

4. Kubota Corporation (KUB) is a Japanese iron and steel maker. Total revenue last year was about $11B. KUB does not pay dividends and the company’s earnings are in-line with peers in the industry.

5. UK-based Tomkins plc(TKS) is a manufacturer of Industrial & Automotive and Building Products. TKS has a dividend yield of 11.39% and the P/E is 10.81. Over the past 12 months TKS paid more dividends to investors than earnings. This may not be sustainable.

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