The idea behind the title is that sometimes we don’t have to invest directly in order to invest in some specific sector/investment. It is kinda like investing indirectly in the sector you want. In this post lets review a few such strategies.
1.Commodity
Instead of investing directly in commodity stocks like oil,mining, etc. it may be a better and easy way to pick up some commodity rich countries. Countries like Canada,Australia, Brazil, Russia match this scenario since they are so commodity driven economies.
To invest in them pick up the following ETFs:
Australia – EWA
Canada – EWC
Russia – RSX
Brazil – EWZ
2.Growth in Central Europe
To take advantage of growth in central European countries like Romania, one can pick up some ishares Austria shares EWO. This will give indirect exposure to Central Europe. Erste Bank, a large Austrian bank is expanding heavily in neighboring countries.
When analyzing dividend stocks its important to not only look at the current yield but also other other factors like payout ratio, dividend growth rate, etc. The rate at which a company is able to increase dividends year after year matters the most. When the dividend growth rate is high rate it shows that the company generates enough profits each year to afford dividend increases. So in this post lets look at a few foreign dividend stocks whose 5-year average dividend growth rate is high.Photo: Tuscany, Italy.