The Worlds Biggest Dividend Payers, Q1 2018

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Janus Henderson Investors has published the Janus Henderson Global Dividend Index, a quarterly, long-term study into global dividend trends. The study analyzes the dividend payments of the 1,200 largest firms by market capitalisation globally.

The Worlds Biggest Dividend Payers, Q1 2018 from the report:

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Source: Janus Henderson Global Dividend Index, Janus Henderson Investors

While most of the firms in the top ten are well known, Nordea Bank(NRBAY) of Sweden may be unknown to some investors. It is interesting that this relatively small bank from Scandinavia appears in the top 10 global dividend payers.

Disclosure: No Positions

Oil and Gas Sector Stocks Are Cheap Based on Valuation: Schroders

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Oil prices have soared in the past year with prices currently hovering around the $80 mark for Brent crude. Rising oil prices have triggered a mini bull market in energy stocks that have barely moved higher in the past few years. Global investors are turning attention to this sector after many years and are trying to identify potential winners.Despite the rise in energy stock prices, the sector remains cheap according to a piece by Schroders.

From the article:

Valuations suggest the sector looks cheap

Another very important point to mention is that in our view the oil companies appear to be cheap.

Four years of declining oil prices have weighed on the sector, especially as some companies have been forced to cut their dividends or pay them in scrip (shares) instead of cash. The sector as a whole is out of favour with the market.

However, those firms that continued with disciplined investments through the downturn may find themselves in a good position with demand still strong and oil prices back on the rise once more.

In short, we see opportunities in the sector, both among producers and services firms. While global growth may be peaking, and worries abound over trade and geopolitics, the energy sector has a cycle of its own, driven by long-term supply and demand dynamics.

Moreover, we see oil stocks as beneficiaries of inflation which, as we have discussed before (here and here), could be on the way back.

Source: Why the oil & gas sector is energising investors by James Sym, Schroders

 

The Top 10 Dividend Stocks of Chile

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Chile is one of the attractive markets for income investors. Among the major emerging markets, Chile is one of the widely followed ones due to its importance of commodities especially copper and lithium. Next to Mexico, the Chilean equity market can be considered as the most stable and well developed equity market in Latin America. One of the unique qualities of Chilean companies is that by law a certain portion of profits each year have to be paid out to shareholders as dividends.

The top 10 dividend stocks by yield in Chile are shown in the chart below:

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Note: Data shown is as of April 20, 2018 and is based on the domestic market.

Source: Dividend Ranking

Banco Santander- Chile (BSAC) and Banco de Chile (BCH) are consistent well paying dividend payers. Sociedad Química y Minera de Chile (SQM) has attracted global investors’ attention in recent years due to the voracious demand for lithium which is used in the batteries of Electric Vehicles(EVs).

Disclosure: Long BCH

Stock Buybacks by US Firms are Soaring

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US firms are buying back their own stocks at a much higher rate than last year. After the corporate tax rate was slashed from 35% to 21%, American companies decided to put their cash hoardings to use by buying back stocks.

S&P estimates US firms are expected to spend $650 billion on share buybacks this year.

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Chart Source: Barron’s

Source: Share buybacks are soaring – is this a sign of market turmoil ahead?, Money Observer

The Top 10 British Dividend Stocks

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The British equity market is one of the best markets for investors looking for dividend stocks. The UK has a strong dividend culture and compared to the 2% or so on the S&P 500, British firms tend to have much higher dividend yields. In addition, US investors do not have to worry about dividend withholding taxes (except REITs).

The top 10 dividend stocks by yield among the publicly traded British companies are shown in the chart below:

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Note: Data shown is as of April 20, 2018 and is based on the domestic market.

Source: Dividend Ranking

Disclosure: No Positions