Knowledge is Power: Charts, Multiple Nest Eggs, Hated Bull Market Edition

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Well. Sometimes the stock market can fall. It shouldn’t be a shock or surprise to anyone.

Here are a few articles for the weekend:

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Versailles Palace Gardens, France

S&P 500 Index: Foreign vs. US Revenue Exposure

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tLarge cap US firms have substantial exposure to foreign markets In fact, because many US multinationals derive a high proportion of their reviews from overseas markets some investors try to gain exposure to foreign markets by simply owning US stocks.

I have never seen a chart showing the US revenue of S&P 500 firms against their foreign revenues. But this week I came across a chart showing this comparison by sector sector .

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Source:Capturing Global Market Gains Using U.S. Sectors, Indexology Blog

Of all the sectors in the S&P 500, The tech sector generates the most revenues from foreign markets. The sector accounts for only 24% of the index but earns 41% from overseas. Financials on the other hand derive more than one fourth of their revenues from the domestic market.

 

 

26 UK Dividend Heros

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The UK equity market has one of the highest dividend yields in the world. Many of the large British firms pay a high proportion of their profits as dividends and some of them have increased payments over the years.

Among the FTSE 10o constituents, 26 members have increased their dividends for at least the past 10 years. These “Dividend Heros” are listed below:

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Source: AJ Bell Dividend Dashboard, Q4,17

Investors looking to add UK dividend stocks can consider adding some of the stocks from the above list.

Some of these firms trading on the US include:

  • Vodafone Group PLC (VOD)
  • British American Tobacco PLC (BTI)
  • Imperial Tobacco PLC (ITYBY)
  • BAE Systems PLC (BAESY)
  • Diageo PLC (DEO)

Disclosure: No Positions

Five Foreign Auto-Parts Suppliers To Consider

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The auto industry is one of the most important industries in the world. In developed countries such as those in Western Europe and North America, the auto industry is considered as a systematically important industry that gets bailed out even if a company goes bankrupt. However for investors the way to benefit from the industry is not to invest in auto makers but to invest in the parts makers that supply the various auto companies. These auto components have a solid business model whereby they provide the auto makers with various parts needed to build a new vehicle and also sell after-market parts when those vehicles get older.

I reviewed a Blackrock report on the automobile industry and its future.One chart that caught my attention from the report is the following showing the many industries related to the auto industry and their profit margins:

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Source: Future of the vehicle –Winners and losers: from cars and cameras to chips, Blackrock

Five foreign auto parts suppliers to consider for further research are listed below with their current dividend yields:

1.Company: Valeo SA (VLEEY)
Current Dividend Yield: 1.74%
Country: France

2.Company: Magna International Inc (MGA)
Current Dividend Yield: 1.87%
Country:

3.Company: Denso (DNZOY)
Current Dividend Yield: 1.51%
Country: Japan

4.Company: Continental AG (CTTAY)
Current Dividend Yield: 1.52%
Country: Germany

5.Company: Autoliv Inc (ALV)
Current Dividend Yield: 1.75%
Country: Sweden

Note: Dividend yields noted above are as of Jan 26, 2018. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Some of the top US firms in the industry are: Lear Corporation(LEA), Delphi Technologies(DLPH),  BorgWarner Inc (BWA) and Visteon Corporation(VC).

Disclosure: Long ALV, CTTAY and MGA