Dividend Yield: Asia vs. Other markets

The Dividend Yields offered by Asian firms is higher other equity markets. With a dividend yield higher than 2.5% Asian companies pay the second highest yield after Europe. This rate is also much higher than the dividend yield of American companies.

The chart below shows the comparison of Asian dividend yield to other markets:

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Source: Why consider investing in Asia now? Seven charts that tell the story, Matthew Dobbs, Schroder’s

The author of the above piece noted that reduced debt with rising earnings has the potential for higher payouts. So investors looking for income may want to consider Asian stocks.

Comparing the Returns of Commodities and U.S. Stocks : Chart

U.S. stocks outperformed commodities in the past five years. As an asset class, commodities are always more volatile than stocks and are not suitable for most investors. Though there are many commodity derivative products such as ETFs that make investing in commodities easier, investing in commodities is not for everybody.

The following chart shows the returns of commodities and US stocks:

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Source: Will You Miss the Commodity Comeback? by Christopher Gannatti and Florian Ginez, WisdomTree

Related:

When Markets Dip, Don’t Drop Out: Infographic

One of the themes I have discussed many times on this blog is the futility of market timing. Success with equity investing involves holding stocks for the long-term which includes periods of bull markets and bear markets. The following updated infographic from Schwab shows the difference in returns between three types of investors:

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Source: Charles Schwab

10 Stocks To Monitor And Add As Markets Wobble

US equity markets fell yesterday with the Dow down 1.68% and the S&P 500 off by 1.33%. After a few years of smooth sailing investors are suddenly facing the gyrations of a volatile market. A myriad of reasons are being thrown around for the shift in market directions including rising interest rates, valuation concerns, extreme speculation driven by investors’ fascination with crypto currencies and marijuana stocks, sky-high margin debt, etc. The cause of yesterday’s fall was apparently Trump’s plan to slap tariffs on steel and aluminum imports.

Day-today market movements are more of a worry for short-term traders than long-term investors. Instead of focusing on the daily movement of markets, long-term investors can patiently wait, monitor and take advantage of cheaper prices. When there is heavy selling usually quality names also gets thrown out the window. So astute investors can grab stocks at attractive prices when everyone else is dumping.

Listed below are ten stocks from different sectors with their current dividend yields. Investors can track and add these companies after further research. It is also important to remember that adding in phases is a smart move than going all in at once.

1.Company: General Mills Inc (GIS)
Current Dividend Yield: 3.88%
Sector: Food Products

General Mills fell from over $70 early last year to $50.57 yesterday. More recently the stock traded around $60. The current decline was attributed to the company’s expensive acquisition of pet food marker Blue Buffalo.

2.Company: Canadian National Railway Co (CNI)
Current Dividend Yield: 1.84%
Sector: Railroads

Despite decent earnings past quarter. the stock has barely moved strongly. As one of Canada’s two railroads with extensive network in the US market CN is always a long-term buy especially when it is on sale.

3.Company: Kimberly-Clark Corp (KMB)
Current Dividend Yield: 3.61%
Sector: Household Products

4.Company: Fomento Economico Mexicano SAB de CV (FMX)
Current Dividend Yield: 1.46%
Sector: Beverages (Nonalcoholic)
Country: Mexico

5.Company: Eni SpA (E)
Current Dividend Yield: 5.52%
Sector:Oil, Gas & Consumable Fuels
Country: Italy

6.Company:Diageo PLC (DEO)
Current Dividend Yield: 2.54%
Sector: Beverages
Country: UK

7.Company:Consolidated Edison Inc (ED)
Current Dividend Yield: 3.82%
Sector:Multi-Utilities

8.Company: Church & Dwight Co Inc (CHD)
Current Dividend Yield: 1.77%
Sector:Household Products

9.Company: Valeo SA (VLEEY)
Current Dividend Yield: 2.16%
Sector: Auto-parts
Country: France

10.Company: BASF SE (BASFY)
Current Dividend Yield: 3.18%
Sector:Chemicals
Country: Germany

Note: Dividend yields noted above are as of Mar 1, 2018. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long GIS, CNI