Brazilian Utilities with More Than 5% Yields

Posted by on

The following Telecom and Utility ADR stocks of Brazil offer dividend yields of more than 5%. It should be noted however some of these companies do not pay dividends consistently.
1.Brasil Telecom Participacoes S/A (BRP) is a telecom provider with headquarters in Brasilia. The current yield is 7.36% and the P/E ratio is 14.04. Year-to-date the stock is down about 41%. In October BRP reported that its net revenue grew by 3.4% over last year.

2. Brasil Telecom S.A. (BTM) has a dividend yield 6.98%. Year-to-date the stock is down about 35%. On Dec 18, the Oi acquisition of BTM was approved.

3.The electricy utility CPFL Energia S.A. (CPL) pays a dividend of 9.40%.Year-to-date the stock is down about 21%. Annual revenue growth in the past 5 years is 12%.

4.Telecomunicacoes de Sao Paulo S/A-Telesp (TSP) is a fixed-line telecommunication services provider in the State of Sao Paulo. About 77% of its customers are residential users. The current yield is 6.73%. Annual dividend growth in the last 5 years is 25.25%.

5. TIM Participacoes SA (TSU) is wireless provider in Brazil. Annual revenue growth in the last 5 years is 69.21%. The current dividend yield is 5.82%.

Note: All data is as of market close Dec 19, 2008.

How Many Banks Will Fail in 2009?

Posted by on

deFaoilWell thats the $64,000 question many investors are worried about. We will never know until the FDIC announces the closings. This year (2008) so far 25 banks have failed. This number is lower than the hundreds predicted by some folks. With 3 business days remaining this year, we can only hope that the FDIC does not announce any more closings for 2008. Usually they announce them on Friday after market close.

2008 Failed US Banks:

Bank Name Closing Date Updated Date
Sanderson State Bank, Sanderson, TX
En Español December 12, 2008 December 12, 2008
Haven Trust Bank, Duluth, GA December 12, 2008 December 12, 2008
First Georgia Community Bank, Jackson, GA December 5, 2008 December 5, 2008
PFF Bank and Trust, Pomona, CA November 21, 2008 November 21, 2008
Downey Savings and Loan, Newport Beach, CA November 21, 2008 November 21, 2008
The Community Bank, Loganville, GA November 21, 2008 November 21, 2008
Security Pacific Bank, Los Angeles, CA November 7, 2008 November 7, 2008
Franklin Bank, SSB, Houston, TX November 7, 2008 November 7, 2008
Freedom Bank, Bradenton, FL October 31, 2008 October 31, 2008
Alpha Bank & Trust, Alpharetta, GA October 24, 2008 October 24, 2008
Meridian Bank, Eldred, IL October 10, 2008 October 10, 2008
Main Street Bank, Northville, MI October 10, 2008 October 10, 2008
Washington Mutual Bank, Henderson, NV and Washington Mutual Bank FSB, Park City, UT September 25, 2008 October 20, 2008
Ameribank, Northfork, WV September 19, 2008 October 20, 2008
Silver State Bank, Henderson, NV
En Español September 5, 2008 October 20, 2008
Integrity Bank, Alpharetta, GA August 29, 2008 December 23, 2008
The Columbian Bank and Trust, Topeka, KS August 22, 2008 October 20, 2008
First Priority Bank, Bradenton, FL August 1, 2008 October 27, 2008
First Heritage Bank, NA, Newport Beach, CA July 25, 2008 October 20, 2008
First National Bank of Nevada, Reno, NV July 25, 2008 December 9, 2008
IndyMac Bank, Pasadena, CA July 11, 2008 October 27, 2008
First Integrity Bank, NA, Staples, MN May 30, 2008 October 20, 2008
ANB Financial, NA, Bentonville, AR May 9, 2008 October 27, 2008
Hume Bank, Hume, MO March 7, 2008 October 27, 2008
Douglass National Bank, Kansas City, MO January 25, 2008 October 20, 2008

Past Failures:

The number of bank failures increased in the US in the 1980s.

Average bank failures per year from 1955 to 1981 = 5.3

Average bank failures per year from 1982 to 1990 = 131.4

This number is 25 times the failures from 1955 to 1981.

Average bank failures per year from 1987 to 1990 = 187.3 (due to many S&L; collapses)

This year we have had 25 failures. Last year there were only 3 failures.

In Oct, LA times reported that the FDIC is seeking new office space in California to house 600 people and manage bank closings in 2009. The Times stated:

“The Federal Deposit Insurance Corp. plans soon to sign a major lease of office space in Orange County, probably in Irvine, where as many as 600 people would liquidate the assets of troubled banks and thrifts based in California and other Western states.

The agency needs 200,000 square feet of space and has looked at locations across Southern California, FDIC spokesman David Barr said.

“It’s a temporary office – three to five years is what we’re looking at,” Barr said Tuesday. “We hope to find the space within the next few weeks.””

Last Month the FDIC said:

“The list of banks it considers to be in trouble shot up nearly 50 percent to 171 during the third quarter _ yet another sign of escalating problems among the institutions controlling Americans’ deposits.

The 171 banks on the FDIC’s “problem list” encompass only about 2 percent of the nearly 8,500 FDIC-insured institutions. Still, the increase from 117 in the second quarter is sharp, and the current tally is the highest since late 1995.

“We’ve had profound problems in our financial markets that are taking a rising toll on the real economy,” said FDIC Chairman Sheila Bair in a statement, adding that Tuesday’s report “reflects these challenges.”‘

With the new office in Cali and the long troubled banks list, we can be sure that there will more closings next year.

Five Stocks of DJ STOXX NORDIC Select Dividend 20 Index

Posted by on

The Dow Jones STOXX Nordic Select Dividend Index contains 20 components that have the top dividend stocks from the Nordic countries. The index is defined as:

“the ideal tool to track high-dividend-yielding companies and to participate in their respective dividend payouts, across the Nordic region: Denmark, Finland, Iceland, Norway and Sweden. ”

The following are five companies and their current yields from this index:

1.Company Name: Aktieselskabet Dampskibsselskabet Torm
Ticker: TRMD
Dividend Yield : 8.08%

2.Company Name: Metso Corp
Ticker: MXYCY
Dividend Yield : 21.96%

3.Company Name: Statoilhydro ASA
Ticker: STO
Dividend Yield : 5.11%

4.Company Name: UPM-Kymmene Oyj
Ticker: UPMKY
Dividend Yield : 9.51%

5.Company Name: Volvo AB
Ticker: VOLVY
Dividend Yield : 19.67%

Five Stocks of DJ STOXX NORDIC Select Dividend 20 Index

Diamonds in the Rough

Posted by on

Investors have traditionally stayed away from the OTC market (Pink Sheets) since they were considered to be unsafe.While this is true since many penny stocks trade in the pink sheets and are highly risky, there are some high quality foreign companies that trade in this market. Some of these companies are multi-billion dollar well established companies in their domestic countries. When the New York Stock Exchange raised the fees a few years ago and the Sarbane-Oxley regulations came into effect quite a few foreign companies delisted their ADR stocks from the NYSE and listed them in the OTC market.

The following are some of the sponsored ADRs trading in the OTC markets:

1. Nestle SA (NSRGY)
Dividend Yield: 3.29%

2.Enel Societa Per Azioni (ENLAY)
Dividend Yield: 9.84%

3. Swedbank (SWDBY)
Dividend Yield: 29.21%

4.Danske Bank (DNSKY)
Dividend Yield: 15.79%

5. Tesco Plc (TSCDY)
Dividend Yield: 6.17%

6. BNP Paribas (BNPQY)
Dividend Yield: 10.04%

7.Henkel AG (HENKY)
Dividend Yield: 3.35%

Some of these stocks may have thin trading volumes. I will list more foreign stocks listed in the OTC market in future posts.