A Note on Santander ADRs Trading on the NYSE

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Four different type of Santander bank ADRs trade on the New York Stock Exchange.In order to clarify any confusion when identifying the relevant ticker, here is a brief overview of the four ADRs:

1.Banco Santander SA (SAN):

Santander is the Spain-based multinational banking group with operations in Spain, the United Kingdom, Portugal, the Latin American countries and the United States. The ticker changed a while ago to SAN from STD. Currently the bank has a market capitalization over $73.0 billion and the share price closed at $7.13 today with the dividend yield at 11.35%. Due to high losses stemming from its exposure to the Spanish real estate market and the financial crisis, the stock fell heavily and reached a low of $4.87 in March 2009.

2. Banco Santander-Chile (BSAC):

This bank is one of the largest private sector banks in Chile. Today the stock closed at $26.92 and the current dividend yield is 4.18%. Unlike SAN, Santander-Chile has a smaller market capitalization of over $12.0 billion and is a better long-term performer than the Spanish banking group. The former ticker for BSAC was SAN.

3. Banco Santander Brasil SA (BSBR):

Santander Brazil is one of the large full-service banks in Brazil. The ADR was listed on the NYSE in October 2009 . The current dividend yield is 3.63% and the market capitalization is over $26.0 billion. Though the stock reached a peak of over $15 in late 2010, it closed at $6.90 today.

4.Santander Mexico Financial Group, S.A.B. de C.V (BSMX):

Founded in 1991, Mexico City, Mexico-based Santander Mexico Financial Group offers banking services primarily in Mexico. The ADR became effective on October 1, 2012. The bank has a market capitalization of over $9.0 billion and the stock pays no dividends. At the end of September Santander Mexico served 9.7 million customers.

A comparison of 5-Year performance of Banco Santander of Spain and Santander-Chile:

Click to enlarge

Source: Google Finance

The difference is returns is due to the strength of the Chilean economy and the banking system compared to the poor performance of the Spanish economy in the past few years.

Note: Dividend yields and other data noted are of Nov 7, 2012

Disclosure: Long SAN

Knowledge is Power: German Banking, Brazil, Wealth Effect Edition

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Germany: Europe’s quiet banking crisis (EuroMoney)

Euro-Zone Unemployment Higher than Ever Before (Der Spiegel)

The wealth effect: Spending like you are rich (Financial Post)

The world needs more food – and Latin America is the place to invest (MoneyWeek)

Presentation: Brazil – The end of the (love) affair? (DB Research)

America’s deleveraging- Still a long way to go (The Economist Blog)

Picking dividend stocks (Fidelity)

11 U.S. stocks with reliable dividend growth (The Globe and Mail)

 Analysis: Guns in America: The business of fear (Montreal Gazette)

Click to enlarge

Top 25 US Pharma Products by Sales

 

Source: Pharmaceutical Executive

Which Asian Companies Own North American Gas Assets?

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Many Asian energy companies and utilities have bought stakes in North American gas and oil assets to export North American gas to their home markets or sell in the North American market. The following table lists the Asian companies owning North American gas assets:

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Source: The Potential Impact of North American LNG Exports, James Henderson, October 2012, The Oxford Institute for Energy Studies, UK

Ten Emerging Asia Dividend Stocks To Consider

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Emerging market stocks have traditionally been favored by investors for their price appreciation potential. Most emerging markets were not known for high dividend yields and investors did not focus their attention on emerging market stocks for their dividend yields. However that need not be the case now as many emerging market companies pay high and consistent dividends similar to those in developed markets.

The following chart shows the Dividend Per Share(DPS) and Earnings Per Share(EPS) for the MSCI Emerging Market Index:

Click to enlarge

Some of the reasons to invest in emerging market dividend stocks include:

  • Companies in the MSCI Emerging Markets Index have increased dividend payments steadily for the last ten years.
  • Unlike earnings, dividend payments have been more steady.
  • Dividend payout ratios have been stable and stood mostly in the 30% to 40% range.
  • As many of these companies mature the potential to increase dividend payouts is high.
  • Emerging market companies have lower debt levels than developed market companies.
  • Emerging companies also have high cash levels on their balance sheets.
  • The number of emerging stocks in the MSCI World Index having high dividends yields has increased from 60 in 1995 to 302 in 2011.

Source: Harvesting dividends from growing regions, UBS

Ten Asian Emerging Stocks are listed below with their current dividend yields:

1.Company: Taiwan Semiconductor Manufacturing Co Ltd(TSM)
Current Dividend Yield: 3.15%
Sector: Semiconductors
Country: Taiwan

2.Company:PetroChina Co Ltd (PTR)
Current Dividend Yield: 3.68%
Sector: Oil & Gas Operations
Country: China

3.Company:Philippine Long Distance Telephone Co (PHI)
Current Dividend Yield: 4.14%
Sector:Communications Services
Country:Philippines

4.Company: Malayan Banking Bhd (MLYBY)
Current Dividend Yield:7.09%
Sector: Banking
Country: Malaysia

5.Company: Posco (PKX)
Current Dividend Yield: 3.45%
Sector: Iron & Steel
Country: Korea

6.Company:China Petroleum & Chemical Corp (SNP)
Current Dividend Yield: 4.40%
Sector: Oil & Gas Operations
Country: China

7.Company:Chunghwa Telecom Co Ltd (CHT)
Current Dividend Yield: 5.81%
Sector: Telecom
Country: Taiwan

8.Company: S-Oil Corp (SOOCY)
Current Dividend Yield:
Sector: Oil & Gas Operations
Country: South Korea

9.Company: PT Telekomunikasi Indonesia (TLK)
Current Dividend Yield: 3.37%
Sector: Telecom
Country: Indonesia

10.Company: SK Telecom Co Ltd (SKM)
Current Dividend Yield: 5.81%
Sector: Telecom
Country: South Korea

Note: Dividend yields noted are as of December 2, 2012

Disclosure: No Positions

Related:

JP Morgan makes case for emerging markets income (Trustnet, UK)

Knowledge is Power: Turkey, Sandy, Taxes Edition

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Turkey: can stocks go any higher? (Beyond BRICs)

The best way to invest in Britain’s stockmarket (MoneyWeek)

Load up on Canadian equities, says Canaccord strategist (Financial Post)

How to take a punt on the eurozone (TrustNet UK)

Are Taxes Headed Higher? (Charles Schwab)

Hurricane Sandy –  Costs to come (The Economist Blog)

Economically speaking, Hurricane Sandy not seen as devastating (Macleans)

Internet traffic exchange: 2 billion users and it’s done on a handshake (OECD Insights Blog)

Picking dividend stocks (Fidelity ViewPoints)

A Visit to Google Land – The Intransparent Methods of an Internet Giant (Der Spiegel)

 

Source: Global Finance