Foreign Stocks Trading At Over $100 Per Share

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One of the survivors of the dot-com era is the online travel company priceline.com Inc (PCLN). Yesterday its stock price closed at $1,062.17 per share. The share price first crossed the $1,000.00 on September 20th.

So I was wondering which foreign stocks traded above $100.00 per share. According to BNY Mellon data, the following 14 foreign stocks closed at over $100.00 per share on Oct 4, 2013.

S.No.CompanyTickerShare Price as of Oct 4,2013IndustryCountry
1China National Offshore Oil-CNOOCCEO$206.80Oil & Gas ProducersChina
2Novo NordiskNVO$166.16Pharma. & Biotech.Denmark
3BaiduBIDU$159.00Software&ComputerSvcChina
4Toyota MotorTM$128.01Automobiles & PartsJapan
5Coca-Cola FemsaKOF$126.91BeveragesMéxico
6DiageoDEO$125.68BeveragesUnited Kingdom
7SiemensSI$123.05General IndustrialsGermany
8ShireSHPG$118.33Pharma. & Biotech.United Kingdom
9Grupo Aeroportuario del SuresteASR$114.14IndustrialTransport.México
10PetroChinaPTR$111.72Oil & Gas ProducersChina
11British American TobaccoBTI$102.77TobaccoUnited Kingdom
12ASMLASML$100.96Tech.Hardware&Equip.The Netherlands
13WPPWPPGY$100.89MediaUnited Kingdom
14KyoceraKYO$100.34Electron.&ElectricEqJapan

 

Source: BNY Mellon

Though a share price of above $100.00 does not mean anything, these companies are still worth keeping an eye on as there is a possibility that they may split their stock prices to make them more attractive for retail investors.

Disclosure: No Positions

Time To Invest In British Stocks ?

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British equities are lagging in performance over their developed world peers so far this year. The FTSE 100 is up only 9.4% while the S&P 500, Germany’s DAX and France’s CAC-40 are up by 18.5%, 13.3% and 14.4% respectively.The following chart shows the year-to-date performance of FTSE 100 (in blue) against these three major indices:

Click to enlarge

FTSE100-vs-Other-Indices

Source: Yahoo Finance

Up until mid-August the FTSE tracked or performed better than DAX and the CAC-40 indices. However when emerging markets started to fall due to the sudden depreciation of their currencies against the dollar and other economic issues, the FTSE followed. This is because unlike the DAX and CAC-40, the FTSE 100  is composed of companies that have high exposure to emerging countries. In fact, some major companies in the index generate over half of their annual revenues from emerging countries. So as emerging markets started to unravel the FTSE 100 was more impacted than the DAX and CAC-40.

The top five constituents of the FTSE 100 are:

1.HSBC Holdings  – Banking

2. Vodafone Group  – Mobile Telecom

3. BP – Oil & Gas Production

4. GlaxoSmithKline  – Pharmaceuticals & Biotechnology

5.Royal Dutch Shell A  –  Oil & Gas Production

All the above five firms are global multinationals with a strong presence in developing countries. For example, Vodafone  was able to offset growth decline in European countries with strong growth in developing countries such as India, Turkey and Ghana.

As emerging markets have stabilized in recent weeks the sell-off in British stocks looks overdone and they are poised for a rebound. Hence investors looking to add some exposure to emerging markets can consider adding some of the major British companies at current levels. An added advantage for U.S. investors in British stocks is that the withholding tax rates on dividends paid out by U.K. corporation is 0%. However dividends paid by U.K. REITs are taxed at 20%.

Ten British stocks trading on the U.S. markets are listed below to consider with their current dividend yields:

1.Company: Vodafone Group PLC (VOD)
Current Dividend Yield:4.43%

2.Company: HSBC Holdings PLC (HBC)
Current Dividend Yield: 4.29%

3.Company: British American Tobacco PLC(BTI)
Current Dividend Yield: 3.97%

4.Company: GlaxoSmithKline (GSK)
Current Dividend Yield: 4.70%

5.Company: BP PLC (BP)
Current Dividend Yield: 5.05%

6.Company: AstraZeneca PLC (AZN)
Current Dividend Yield: 5.41%

7.Company: Diageo PLC (DEO)
Current Dividend Yield: 2.27%

8.Company: Aviva PLC (AV)
Current Dividend Yield: 3.35%

9.Company: Barclays PLC (BCS)
Current Dividend Yield: 2.30%

10.Company: Bhp Billiton PLC (BBL)
Current Dividend Yield: 3.89%

Note: Dividend yields noted are as of Oct 4, 2013. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: No Positions

Foreign Bank Stocks May Be A Good Bet Now

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The banking sector was one of the hardest hit sectors during the global financial crisis. However the sector has rebounded strongly in most countries as the global economy recovered from the abyss of those dark days of the crisis. Banks wrote off billions of dollars of bad debt and cleaned up their balance sheets. Many weaker banks failed or were acquired and the better ones not only survived but have become bigger and stronger since. We can safely assume that the worst is over the sector and it is an opportune time to load up on banking stocks. For example, most European banks are in a better shape now than before and have the resources to weather another crisis, although a crisis of the magnitude of the recent financial crisis is unlikely to occur anytime soon. Hence investors looking to gain some exposure to this sector or higher dividend yields can consider some of the foreign bank stocks. Obviously not all banks are out of the woods yet and some are still struggling. Germany-based Commerzbank AG (CRZBY) is one such bank which is still far away from getting back to “normal” . Despit.e a 1:10 reverse in April the bank’s ADR share price is still down since the split. So its important to be selective

Ten randomly-selected foreign bank stocks are listed below with their current dividend yields for consideration:

1.Company:  Banco Santander- Chile (BSAC)
Current Dividend Yield: 3.07%
Country: Chile

2.Company:Royal Bank of Canada (RY)
Current Dividend Yield: 4.03%
Country: Canada

3.Company: HSBC Holdings PLC (HBC)
Current Dividend Yield: 4.29%
Country: UK

4.Company: Westpac Banking Corp (WBK)
Current Dividend Yield: 5.61%
Country: Australia

5.Company: Credicorp Ltd (BAP)
Current Dividend Yield: 2.01%
Country: Peru

6.Company: Nordea Bank AB (NRBAY)
Current Dividend Yield: 3.62%
Country: Sweden

7.Company: DBS Group Holdings Ltd(DBSDY)
Current Dividend Yield: 6.76%
Country: Singapore

8.Company: Societe Generale (SCGLY)
Current Dividend Yield: 1.15%
Country: France

9.Company: Australia and New Zealand Banking Group Ltd (ANZBY)
Current Dividend Yield: 5.04%
Country: Australia

10.Company: Deutsche Bank AG (DB)
Current Dividend Yield: 2.00%
Country: Germany

Note: Dividend yields noted are as of Oct 2, 2013. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long SCGLY, RY

Mexican Stocks Are Performing Better Than Brazilian Stocks

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Mexican stocks have been performing better than the Brazilian stocks since last year. While Brazil was adversely impacted due to the slowdown in the Chinese economy, currency exchange volatility and domestic political issues, Mexico has remained stable. The Mexican economy is more closely tied to the U.S. economy and hence Mexico has benefited from the improving U.S. economy. New political leadership implementing energy industry reform is also making the country more attractive for foreign investors.

The following chart shows the 5-year return of the iShares Mexico ETF against the iShares Brazil ETF(in red):

Click to enlarge

EWZ-vs-EWW-5-Years

Source: Yahoo Finance

The iShares Brazilian ETF has been flat in the time period shown while the Mexican ETF has grown by about 60%. Year-to-date also Mexico has outperformed Brazil.

Related ETF:

  • iShares MSCI Mexico Capped Investable Market Index Fund (EWW)
  • iShares MSCI Brazil Index (EWZ)

Disclosure: No Positions

Ten Brazilian Stocks To Consider For Dividend Income

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Global investors generally tend to invest in emerging market equities primarily for their price appreciation potential. The reasoning behind this theory is that the economies of these markets are still developing and they have plenty of room to grow in order to catch up with their developed world peers. Hence stocks should soar higher and higher every year. Instead of purely focused on price appreciation investors in emerging stocks may also want to consider them for their dividends since dividends form a significant portion of the long-term total returns for any market.

The concept of paying dividends to shareholders is becoming increasingly popular with companies in the emerging world also. For example, many Asian emerging companies  pay out a good portion of their earnings in dividends each year and have maintained the payout policy for years. In some countries, the government continues to be a major shareholder in the now publicly-listed but formerly fully state-owned companies. As a  result the management of these firms pay high dividends in order to keep the state happy.

Similar to developing Asia, many Latin American companies are also adopting the dividend culture. In countries such as Brazil, companies are required by law to pay dividends to their shareholders if they earn a profit. According to the Brazilian corporate law, companies are required to pay out a minimum of 25% of their adjusted net income in dividends at least on a yearly basis. This dividend is called as the mandatory dividend. Brazilian companies usually pay out more than the mandatory dividends. It should be noted however that dividends need not be paid if a corporation does have profits in a given year.

Brazilian stocks have been on a roller-coaster ride in the past few few years. The 5-year return for the Bovespa index is shown below. The index is down just over 14.0% year-to-date.

Click to enlarge

Bovespa-5-years-return

Source: Yahoo Finance

Despite the volatility in the Brazilian equity market, investors looking to gain exposure to Brazil can consider some of the dividend-paying stocks for long-term investment. Ten stocks are listed below for further research:

1.Company: Ultrapar Participacoes SA (UGP)
Current Dividend Yield: 2.49%
Sector:Oil, Gas & Consumable Fuels

2.Company:Banco Santander Brasil SA (BSBR)
Current Dividend Yield: 3.74%
Sector:Banking

3.Company: Itau Unibanco Holding SA(ITUB)
Current Dividend Yield: 3.07%
Sector: Banking

4.Company: Companhia de Bebidas das Americas Ambev (ABV)
Current Dividend Yield: 3.60%
Sector:Beverages

5.Company:Braskem SA (BAK)
Current Dividend Yield: 3.68%
Sector: Chemicals

6.Company:CPFL Energia S.A. (CPL)
Current Dividend Yield: 4.56%
Sector:Electric Utilities

7.Company: Embraer SA (ERJ)
Current Dividend Yield: 1.05%
Sector:Aerospace & Defense

8.Company:Companhia Paranaense de Energia (ELPVY)
Current Dividend Yield: 8.17%
Sector:Electric Utilities

9.Company:Petroleo Brasileiro Petrobras SA (PBR)
Current Dividend Yield: 1.23%
Sector: Oil, Gas & Consumable Fuels

10.Company: Companhia Brasileira de Distribuicao (CBD)
Current Dividend Yield: 0.84%
Sector:Food & Staples Retailing

Note: Dividend yields noted above are as of Sep 27, 2013. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: Long ITUB, PBR