The Best Dividend Stocks For International Investing
Marshall Hargrave: Investors have a lot of anxiety when it comes to international investing. But one of the keys to investing is diversification. This includes expanding beyond just industries and markets, but across geographical markets.
Assuming investors can look past the negative headlines related to the Iraqi conflict and Russian-Ukraine standoff, there are plenty of great international investments.
Dividends are another great way to help control risk when investing in international markets. International dividend stocks yielding 4% are also very enticing at a time when the S&P 500 yields an average of 2%. The top 4 international dividend stocks all yield over 4%.
1. CNOOC Ltd (NYSE: CEO)
This is China’s largest offshore producer of crude oil and natural gas. It also operates in Indonesia, Australia, Nigeria, Uganda, Argentina, the United States, and Canada. CNOOC had proved reserves of 4.4 billion barrels-of-oil equivalent at the end of 2013. Compare that to Chevron’s 11.2 billion barrels-of-oil equivalent.
CNOOC trades at a P/E ratio of only 9.Its debt-to-equity ratio is just under 40%. It has one of the best returns on assets in the oil and gas exploration market at 23%. It also offers one of the best dividend yields at 4.1%, which is only a 32% payout of earnings.
2. Bank of Montreal (NYSE: BMO)
Bank of Montreal is the fourth largest bank in Canada by assets. Earlier this year it acquired F&C Asset Management, doubling the size of its institutional asset management business in Europe. It’ll also be able to utilize the F&C expertise in its North American and Asian client base. Only 1% of F&C asset base were in North America.
Bank of Montreal will get a boost from an improvement in the U.S. economy and housing market. A couple years ago, Bank of Montreal made its largest acquisition ever by buying up Marshall & Ilsley Corp. It effectively doubled its U.S. deposits and branches.
Bank of Montreal trades at a P/E ratio of only 12, which is below some of the U.S.’s largest banks. Its 15% return on equity also towers over the likes of Bank of America and JPMorgan Chase. What’s more is that it offers a 4% dividend yield. Its payout ratio is 47% and its debt to equity of 13% is well below its banking peers.