Cheap Foreign High Yield Stocks by Dividend Yield - Stock, Capital, Investment. Topics of our time are Debt Crisis, Jobless Rate, Recession, Government Spending, Trade Deficit and QE by the Federal Reserve. These are themes that devaluate the U.S. dollar in the long-term. For investors it could make sense to escape from the country and allocate funds abroad in order to find new growth perspectives and to realize foreign capital gains.
I screened all high yield stocks (dividend yield of more than five percent) of U.S. listed companies with headquarter outside the United States. In order to limit the screening results, I decided to implement three additional pricing criterions. First, the stock should have a low forward price to earnings ratio (a value of less than 15). Second, the price to book ratio must be less than the current share price (a value below one) and finally, the price to sales ratio should be cheaper than one too.
As result, 10 stocks remained of which three have a dividend yield of more than eight percent. 30 percent of the stocks are home based in Greece.
Here are my 3 most promising stocks from the screening results:
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1. Veolia Environment (VE) is a French based company and is acting within the waste management industry. The company has a market capitalization of USD 8.6 billion, generates revenues in an amount of USD 48.3 billion and a net loss of USD 324.3 million. It follows forward price to earnings ratio 9.82, Price/Sales 0.2 and Price/Book ratio 0.8. Dividend Yield: 10.5 percent. Years of Consecutive Dividend Increasing: 0 Years. 5-Year Dividend Growth: 32.8 percent. The company paid dividends since 2002.
2. Telecom Italia (TI) is home based in Italy and acts within the diversified communication services industry. The company has a market capitalization of USD 24.2 billion, generates revenues in an amount of USD 41.5 billion and a net loss of USD 124.0 million. It follows forward price to earnings ratio 6.5, Price/Sales 0.6 and Price/Book ratio 0.7. Dividend Yield: 6.8 percent. Years of Consecutive Dividend Increasing: 0 Years. 5-Year Dividend Growth: 2.7 percent. The company paid dividends since 2005.
3. Sun Life Financial (SLF) is headquartered in Canada and acts within the life insurance industry. The company has a market capitalization of USD 15.8 billion, generates revenues in an amount of USD 21.4 billion and a net income of USD 1.8 billion. It follows Price/Earnings ratio is 8.7 and forward price to earnings ratio 8.9, Price/Sales 0.7 and Price/Book ratio 0.9. Dividend Yield: 5.5 percent. Years of Consecutive Dividend Increasing: 0 Years. 5-Year Dividend Growth: 6.6 percent. The company paid dividends since 2000.
Take a closer look at the full table. The average price to earnings ratio (P/E ratio) of the list amounts to 7.0 while the average forward price to earnings ratio is 7.6. The dividend yield has an average value of 6.5 percent. Price to book ratio is 0.8 and price to sales ratio 0.5. The average operating margin amounts to 10.6 percent.
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| 10 Foreign High Yield Stocks (Click to enlarge) |
Related stock ticker symbols:
VE, TNP, HIMX, HNP, E, NM, TI, TEU, STM, SLF
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· Stock Market Performance Update By Countries (Year-to-Date)