11 Foreign Large Caps Paying More Than 5% Dividends

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With one month to go in this year, I wanted to identify some foreign large cap ADRs that paid dividends of over 5%. So I ran the stock screener with the following criteria:

1. Stocks must trade on the NYSE
2. Market capitalization must be >= $50B
3. Stocks must have dividend yields of 5% or more

The search resulted in the following 11 stocks:

1.Company: Vodafone Group Plc (VOD)
Current Dividend Yield: 5.57%
Sector: Telecom
Country: UK

2.Company: Royal Dutch Shell plc (RDS.A)
Current Dividend Yield: 5.03%
Sector: Integrated Oil & Gas
Country: UK

3.Company: TOTAL S.A. (TOT)
Current Dividend Yield: 6.53%
Sector: Integrated Oil & Gas
Country: France

4.Company: GlaxoSmithKline plc(GSK)
Current Dividend Yield: 5.15%
Sector: Major Drugs
Country: UK

5.Company: Sanofi SA (SNY)
Current Dividend Yield: 5.24%
Sector: Major Drugs
Country: France

6.Company: Telefonica S.A (TEF)
Current Dividend Yield: 11.88%
Sector: Telecom
Country: Spain

7.Company: Eni S.p.A. (E)
Current Dividend Yield: 6.98%
Sector: Integrated Oil & Gas
Country: Italy

8.Company: Vale (VALE)
Current Dividend Yield: 7.92%
Sector: Metal Mining
Country: Brazil

9.Company: Westpac Banking Corporation (WBK)
Current Dividend Yield: 8.05%
Sector: Banking
Country: Australia

10.Company: Banco Santander, S.A. (SAN)
Current Dividend Yield: 2.13%
Sector: Banking
Country: Spain

11.Company: AstraZeneca PLC (AZN)
Current Dividend Yield: 6.06%
Sector: Biotechnology & Drugs
Country: UK

Disclosure: Long STD

Knowledge is Power: Sweden, Banks, Real America Edition

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Timing Is Nothing

Are the BRIC currencies set to become reserve currencies?

The High Price of Abandoning the Euro

The Real America

Social Media Snake Oil – How Much Will You Buy?

Wall Street v. Elizabeth Warren

Banks in the balance

Bayterek, Astana, Kazakhstan

Avoid National Bank of Greece After Reverse Split

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National Bank of Greece (NBG) implemented a reverse split on its ADR in the ratio of 1:5 effective November 25, 2011.

From the announcement released by BNY Mellon:

National Bank of Greece has announced a change in the current ratio on its existing ADR program. The current ratio will change from five (5) ADSs representing one (1) Ordinary Share (5:1) to one (1) ADS representing one (1) Ordinary Share (1:1).

To effect the ratio change, a reverse split on the National Bank of Greece DRs on a basis of one (1) new ADS for every five (5) old ADSs will occur.

From a peak of over $14 in November 2007, NBG closed at $0.43 on Friday. From Monday the stock will start trading at the reverse adjusted price.

Though National Bank of Greece is the oldest and largest among Greek banks, it is better to avoid investing in the stock now. Greece has been bailed out twice in recent years and fundamental economic changes have to occur before the country becomes a desirable investment destination. The country is the poorest in Europe and despite being the birthplace of modern democracy, Greece suffers from many social ills such as corruption at all levels, tax evasion, high public sector employment, lowest retirement age, etc.

National Bank of Greece follows Bank of Ireland (IRE) which implemented a reverse split on its ADR last month. More European banks may effect reverse splits as their shares are currently languishing in the single digits and may fall below the $1 mark if the crisis worsens further.

Disclosure: No Positions

Five Latin American Telecom Stocks Yielding More Than 5% Dividends

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The wireless telecom industry in Latin America is projected to have exponential growth over the next few years due to rising incomes and more population entering the middle class category. Cell phones have become a necessity of life worldwide and hence they will be one of the first few items that the middle class aspires to own in addition to others such as a TV, car, household appliances, etc.

From an article on the growth of Telecom industry in Latin America:

The research has been done, the opinions formed, and the consensus is unanimous: Latin America’s telecommunications sector is set for huge growth over the next few years. Driven by increasing end-user affluence, the region’s analysts expect to see a jump in smartphone ownership, rising broadband penetration rates and an increase in mobile services as costs come down and network capacities expand to embrace next generation communications.

Having the right infrastructures in place will be key. Brazil and Chile’s future is highly dependent on audacious and substantial investments into its infrastructure,” says Cristiano Zaroni, Research Director for Frost & Sullivan’s Latin America practice in a research note. As the financial status of its working age citizens continues to improve, demand for infrastructure-intensive services is expected to increase in importance. Internet and telecommunication will become more commonplace, encouraging more investment from international service suppliers and the build-up of larger and more advanced networks.

Five Latin American Telecom ADRs currently paying more than 5% dividends:

1.Company: Telefonica Brasil SA (VIV)
Current Dividend Yield: 14.13%
Country: Brazil

2.Company: Telefonos de Mexico SAB de CV (TMX)
Current Dividend Yield: 5.89%
Country: Mexico

3.Company: Telecom Argentina Sociedad Anonima (TEO)
Current Dividend Yield: 9.20%
Country: Argentina

4.Company: Telefonos de Mexico SAB de CV (TFONY)
Current Dividend Yield: 5.94%
Country: Mexico

5.Company: Brasil Telecom SA (BTM)
Current Dividend Yield: 11.93%
Country: Brazil

Note: Dividend yields noted are as of Nov 25, 2011

Disclosure: No Positions

Top 10 Trade Partners of India

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India is the second largest populous country with a population of over 1.1 billion. The economy grew at a robust pace up until recently after the India opened up its economy and implemented economic reforms. In 2010, the GDP was estimated to be $4.06 Trillion based on Purchasing Power Parity (PPP). The growing economy has led to higher trade with other countries as India competes with China to become a leading manufacturing base.

The following chart shows the Top Trade Partners of India:

Click to enlarge

 

Source: Pakistan to Boost Trade With India ,The Wall Street Journal

Due to high imports of oil and natural gas from the Middle East, UAE and Saudi Arabia appear in this list. Despite strong trade relationship with the U.S. due to off-shoring of IT work and call center businesses, the U.S. ranks as the third as the third trade partner. It is interesting to note that China is a major partner of India.  The Indian scenario is similar to Brazil where growth in trade is higher between Brazil and China than with Brazil and the U.S.

Related ETFs;
WisdomTree India Earnings (EPI)
PowerShares India (PIN)
iShares S&P India Nifty 50 (INDY)
EGShares India Infrastructure ETF (INXX)

Disclosure: No Positions