High Dividend Stocks in Recession Markets
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The article did suggest a couple of high dividend stocks that are outside of the U.S., including a Canadian one I have been monitoring but have not bought as I believe it is a priced a but rich at the moment (Manulife):
One school of investing says you will suffer less volatility and gain income through high-dividend stocks in tandem with bonds. Another desirable trait that could be added to that philosophy: established non-U.S. companies.
For now, a select group of dividend-growing non-U.S. stocks appears to have dodged the maelstrom triggered by subprime mortgage woes. Most are going about their business conservatively and are glad to reward investors with consistent dividends at reasonable share prices.
One example is Vodafone Group Plc, the world’s largest mobile-phone company. The stock has had a total return of 47 percent in the past year, and sports a dividend growth rate of 32 percent over the past half-decade and an estimated price-earnings ratio of 14.4, according to Bloomberg data through Aug. 31.
A similar company is Manulife Financial Corp., Canada’s largest insurer by assets, which has had a total return of 16 percent. With a P/E ratio of 14.6 and dividend growth rate of 25 percent, the firm has been untouched by the U.S. mortgage and housing meltdown.
I like this article because it is not something you see in the North American media. I beleive the media feels that if they suggest buying something other than a U.S. security they are alienating people. However, the name of the game in investing is risk management, and sometimes that is best achieved by looking at markets outside of our own.
6 Comments on this post
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The Div Guy said:
I like to look for dividend yield over 4% such as KMP and ACAS but I do own JNJ, PG, PEP and GE.
September 5th, 2007 at 2:23 pm -
Wealth advisor said:
I agree with your premise. In fact, research found high dividend paying stocks performed very well even in the Great Depression.
October 17th, 2008 at 9:04 pm
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