As Global Markets Seek A Direction Consider These 10 Stocks

Posted by David Hunkar on 24 September 2015, 3:21 am

Equity markets worldwide are volatile again and seem to moving in an aimless direction.As markets try to gain some stability and seek a direction, investors can consider the following ten stocks.In times of uncertainity certain sectors such as defensive sector can provide much needed shelter and even cheaper prices for long-term investment.

1.Company: Henkel AG & Co KGaA (HENKY)
Current Dividend Yield: 1.59%
Sector: Household Products
Country: Germany

2.Company: Reckitt Benckiser Group plc (RBGLY)
Current Dividend Yield: 2.23%
Sector: Household goods
Country: UK

3.Company:Fomento Economico Mexicano SAB de CV (FMX)
Current Dividend Yield: 0.79%
Sector:Beverages
Country:Mexico

4.Company: Church & Dwight Co Inc (CHD)
Current Dividend Yield: 1.58%
Sector:Household Products
Country: USA

5.Company: Fresenius Medical Care AG & Co (FMS)
Current Dividend Yield: 1.07%
Sector: Health Care Providers & Services
Country: Germany

6.Company: Akzo Nobel NV (AKZOY)
Current Dividend Yield: 2.50%
Sector: Paints
Country: The Netherlands

7.Company: Safran SA (SAFRY)
Current Dividend Yield: 1.84%
Sector:Aerospace & Defense
Country: France

8.Company:Vina Concha y Toro SA (VCO)
Current Dividend Yield: 2.32%
Sector:Beverages
Country: Chile

9.Company:The Clorox Co (CLX)
Current Dividend Yield: 2.69%
Sector:Household Products
Country: USA

10.Company:Colgate-Palmolive Co (CL)
Current Dividend Yield: 2.41%
Sector: Household Products
Country: USA

Note: Dividend yields noted above are as of Sept 23, 2015. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long RBGLY

The Top 10 Non-Financial State-Owned Multi-National Companies

Posted by David Hunkar on 23 September 2015, 3:21 am

Governments in some countries own major stakes in private companies.This type of state ownership is not only limited to emerging countries but is prevalent in developed countries as well.

The table below shows the The Top 10 Non-Financial State-Owned Multi-National Companies ranked by foreign assets:

Click to enlarge

Source: World Investment Report 2015, UNCTAD

Volkswagen(VLKAY) is the number one state-owned multi-national Enterprise(SO-MNE) in terms of foreign assets.The German state of Lower Saxony is a large shareholder in the company with a stake of 20%.

Ownership structure of Volkswagen:

Current voting rights distribution (as at December 31, 2014)

Porsche Automobil Holding SE, Stuttgart – 50.73%
State of Lower Saxony, Hanover – 20.00%
Qatar Holding – 17.00%
Others – 12.30%

Source: Corporate site

Currently Volkswagen is in trouble in the US and other countries due to cheating on emission tests. In the past two days billions in market cap haven been wiped out as the stock plummeted.Nearly half of its total workforce is in foreign countries. Europe and China are the two largest markets for the company in terms of sales.

France has large stakes in the utilities EDF (ECIFY) and GDF Suez(GDFZY).

The US used be the largest shareholder in General Motors(GM) when it bailed out the auto maker from collapse> but a couple of years ago the US sold its last remaining stake and is no longer a shareholder in GM. At the time of the bailout GM was aptly nicknamed the “Government Motors”.

Related:

Disclosure: No Positions

Infographic: The Top 40 Asian Retailers

Posted by David Hunkar on 22 September 2015, 3:11 am

Here is an infographic showing the Top 40 Retailers in Asia:

Click to enlarge

Top 40 Asian Retailers

Source: Euromonitor International

In 2014, the top 500 Asian retailers had sales of US $1.1 Trillion. Japanese companies dominate the top 10 list as they have consolidated in the local market and expanded in regional markets as well.Walmart’s (WMT) China subsidiary ranks third in the top hypermarket category.

Disclosure: No Positions

Three Reasons To Consider Adding International Dividend Stocks

Posted by David Hunkar on 21 September 2015, 3:21 am

Investors looking for dividend stocks can consider adding foreign dividend payers to their portfolios. Going abroad pays dividends in more ways than one. For example, not only one can earn higher yields but also benefit from global diversification.Three reasons for adding foreign dividend stocks are discussed below.

1. Dividend Yield:

The dividend yield of most US stocks is notoriously low. The dividend yield of the S&P 500 is around 2%. It has been at this level for many years now. Though one can higher yields in certain sectors such as utilities, in general dividend yields are usually lower in the US market. Compared to the low 2%, an investor can get much higher yields in countries such as Singapore, the UK, Canada, Australia, etc. It is also possible avoid dividend withholding taxes in some cases. So there is no reason to avoid foreign income stocks.

2. Dividend Payout Ratio:

The payout ratio is also lower in the US compared to other developed markets. This is because US firms traditionally prefer to retain profits and reinvest for growth or hoard profits if the management is unable to put the funds to use. Since most investors including large institutional investors prefer price appreciation to income, the current dividend payment mentality suits for companies as well.

Click to enlarge

3. Dividends paid – US vs. abroad:

According to a study by Henderson Global Advisors, nearly 70% of the world’s dividend payments are paid by firms outside the US.

NOTE: The 10 firms listed above are based on dividends paid in Q2, 2015

Source: Going Global Could Pay Dividends, Henderson Global Advisors, Sept 2015

Ten global dividend stocks are listed below with their current yields for further research:

1.Company: Singapore Telecom (SGAPY)
Current Dividend Yield: 4.76%
Sector: Telecom
Country: Singapore

2.Company: Sanofi (SNY)
Current Dividend Yield: 3.26%
Sector: Pharmaceuticals
Country: France

3.Company: Allianz SE (AZSEY)
Current Dividend Yield: 4.97%
Sector:Insurance
Country: Germany

4.Company: Nestle SA (NSRGY)
Current Dividend Yield: 3.00%
Sector: Food Products
Country: Switzerland

5.Company: British American Tobacco PLC (BTI)
Current Dividend Yield: 4.17%
Sector:Tobacco
Country: UK

6.Company: AXA Group (AXAHY)
Current Dividend Yield: 4.37%
Sector: Insurance
Country: France

7.Company: Edp Energias De Portugal SA (EDPFY)
Current Dividend Yield: 6.09%
Sector: Electric Utilities
Country: Portugal

8.Company: DBS Group Holdings Ltd(DBSDY)
Current Dividend Yield: 3.61%
Sector: Banking
Country: Singapore

9.Company: Nordea Bank AB (NRBAY)
Current Dividend Yield: 5.83%
Sector: Banking
Country: Sweden

10.Company: Rogers Communications Inc (RCI)
Current Dividend Yield: 4.14%
Sector: Telecom
Country: Canada

Note: Dividend yields noted above are as of Sept 18, 2015. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long AXAHY