Yahoo Finance 9 Overseas Dividend Stocks to Buy Now
Dividends are waiting overseas.
Many investors looking for income go to the same list of stocks year after year, such as domestic mainstays like consumer giant Procter & Gamble Co. (ticker: PG) and industrial giant General Electric Co. (GE). As performance shows, just because these stocks were popular doesn't make them safe in 2018. Why stick with only familiar names? There's a great big world of dividend stocks out there -- and many picks outside the U.S. offer large scale and big dividends that domestic names simply can't match. Here are nine global dividend payers to explore, all yielding more than 3 percent at present.
Royal Dutch Shell (RDS.A)
While domestic energy stocks like Exxon Mobil Corp. (XOM) are common dividend investments thanks to their scale and long history of payouts, Netherlands-based Shell is no less pedigreed. It has been operating for more than a century, has a market capitalization north of $250 billion and is equally multinational in its oil and gas business. As for the income, the yield is significantly higher than U.S. integrated energy stocks at present. And unlike some of the other stocks on this list, it pays in the Americanized fashion of quarterly payouts that are regular in size versus a more volatile dividend structure.
Current yield: 5.5 percent
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
TSM is a $200 billion chipmaker that has deep relationships with Asian electronics companies, and as such has an amazing baseline business that allows it to generate almost $40 billion in revenue annually. The margins are admittedly thin in semiconductors, which is why there has been consolidation in the sector. But the scale of Taiwan Semiconductor makes it among the leaders. Thanks in part to acquisitions and a general tailwind for global electronics sales, revenue and earnings are both set to grow by double-digits in fiscal 2019. That should keep the generous yield intact and provide stability for income investors.
Current yield: 3.6 percent
Nestle
Though trading as a "pink sheet" stock that is not on a major exchange like the NYSE or Nasdaq, Swiss consumer goods giant Nestle is liquid and large enough to be traded as easily as U.S. staples investments. Nestle operates in almost 200 countries worldwide with a portfolio of some 2,000 products and counting. Nestle continues to expand its already wide footprint in grocery stores, with a recent $7 billion deal with coffee giant Starbucks Corp. (SBUX) to win global distribution rights outside the actual coffee shops themselves. This kind of move shows why Nestle remains one of the leading consumer brands in the world.
Current yield: 3 percent
Unilever (UL)
Another megabrand with global consumers is Unilever, a company that is more than 130 years old and boasts powerful brands including Dove personal care products, Hellmann's mayonnaise and Lipton teas. Unlike some consumer companies that have seen stability but challenges with growth, Unilever has made significant investments in emerging markets from China to Africa. That's how UL has grown its overall revenue 35 percent or so in the last 10 years, all while offering a stable and growing dividend.
Current yield: 3.4 percent
Toyota Motor Corp. (TM)
Global auto sales have seemingly plateaued, after back-to-back record years of vehicle sale in the U.S. in 2016 and 2017. However, Japanese automaker Toyota's sizeable dividend and best-in-class fleet of vehicles make it worthy of a look. The automaker continues to blaze a trail with its Prius line of hybrids and plug-in electric vehicles. And, while conglomerate-Renault Nissan-Mitsubishi is currently the No. 1 manufacturer in the world through the first half of 2018 with 5.55 million vehicles sold, TM isn't far behind with 5.25 million vehicles sold. That kind of scale coupled with consistently generous dividends makes Toyota worth holding in long-term, income portfolios.
Current yield: 3.4 percent
Novartis (NVS)
Swiss drug maker Novartis is a perfect play for any low-risk portfolio. On top of a generous dividend, it is a nearly $200 billion health care powerhouse that is insulated from short-term volatility in the markets thanks to its recession-proof focus on lifesaving drugs. A few of the top NVS drugs right now include treatments for multiple sclerosis, psoriasis, arthritis and cancer. It's easy to see why investors can have confidence that sales in these medications will continue uninterrupted, and the steady revenue will fuel steady dividends going forward.
Current yield: 3.9 percent
GlaxoSmithKline (GSK)
Many American investors know GSK, but sometimes confuse it with big pharma drug makers. In truth, this $100 billion U.K. health care company is more akin to Johnson & Johnson (JNJ) with a wide array of over-the-counter and consumer health products including Sensodyne dental products, Excedrin pain reliever and Tums antacids. Still, its prescription products provide the best margins and the biggest growth potential. Right now, analysts are bullish on a potential shingles vaccine as well as an HIV treatment. That should continue to bring in the cash necessary to maintain generous payouts.
Current yield: 5.3 percent
BP (BP)
Energy giant BP is smaller than Exxon Mobil or Chevron Corp. (CVX) but it is operating in natural gas and oilfields around the world as well as operating some 3,000 service stations. With oil prices back up around $70 a barrel, this integrated energy player is well-positioned to take advantage of that pricing at every step of the energy supply chain. Admittedly, BP had trouble with the Deepwater Horizon disaster in the Gulf of Mexico, but the company has rebounded in a big way. BP is valued at about $150 billion and paying a dividend that is roughly double the typical S&P 500 stock.
Current yield: 5.2 percent
Roche Holding
Another global health care player with a generous yield is Roche, the $200 billion company behind some of the most successful diagnostic and oncology products. And with a nearly $47 billion acquisition of Genentech in 2009, the company is also now increasingly a play in the fast-moving world of biopharmaceuticals. Patent expirations and research trials are always a source of risk, but a built-in base of sales thanks to drugs like blockbuster Avastin that is used for lung, kidney, cervical and ovarian cancer makes this Swiss health care play a slam dunk for any long-term portfolio.
Current yield: 3.8 percent
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