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19 Foreign Stocks With Cheap Valuation And Good Yields

Top yielding foreign stocks with cheap price ratios originally published at "long-term-investments.blogspot.com". Not only stocks from the United States are more expensive. Stock market all over the world rise to new highs but there are still some attractive opportunities.

Today I like to look at foreign dividend stocks. Europe could be a big source for cheap stocks because of the Euro crises. Sure they got a tough fight but if you believe that the 17 nation currency community will survive, you will definitely find some utilities or telecoms.

These are my stock screening criteria:
Headquarter: Ex-USA
Market Capitalization: Over 10 billion
Dividend Yield: +3 percent
Beta Ratio: Below 1
Forward P/E: Under 15

Nineteen companies fulfilled these criteria of which seven are High-Yields. Five of the results have a buy or better recommendation. The valuation is between 6 and 15 of the expected full year earnings.

Here are my favorite stocks:
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Vodafone Group (NASDAQ:VOD) has a market capitalization of $146.16 billion. The company employs 86,373 people, generates revenue of $70.600 billion and has a net income of $10.651 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $22.001 billion. The EBITDA margin is 31.16 percent (the operating margin is 24.10 percent and the net profit margin 15.09 percent).

Financial Analysis: The total debt represents 24.80 percent of the company’s assets and the total debt in relation to the equity amounts to 45.00 percent. Due to the financial situation, a return on equity of 8.46 percent was realized. Twelve trailing months earnings per share reached a value of $-0.53. Last fiscal year, the company paid $1.45 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is not calculable, the P/S ratio is 2.05 and the P/B ratio is finally 1.26. The dividend yield amounts to 5.14 percent and the beta ratio has a value of 0.73.


Long-Term Stock Price Chart Of Vodafone Group (VOD)
Long-Term Dividend Payment History of Vodafone Group (VOD)
Long-Term Dividend Yield History of Vodafone Group (VOD)

GlaxoSmithKline (NYSE:GSK) has a market capitalization of $126.96 billion. The company employs 99,488 people, generates revenue of $40.201 billion and has a net income of $7.215 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $14.093 billion. The EBITDA margin is 35.06 percent (the operating margin is 27.97 percent and the net profit margin 17.95 percent).

Financial Analysis: The total debt represents 44.13 percent of the company’s assets and the total debt in relation to the equity amounts to 315.01 percent. Due to the financial situation, a return on equity of 65.96 percent was realized. Twelve trailing months earnings per share reached a value of $2.56. Last fiscal year, the company paid $2.25 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 20.19, the P/S ratio is 3.18 and the P/B ratio is finally 14.35. The dividend yield amounts to 4.54 percent and the beta ratio has a value of 0.64.


Long-Term Stock Price Chart Of GlaxoSmithKline (GSK)
Long-Term Dividend Payment History of GlaxoSmithKline (GSK)
Long-Term Dividend Yield History of GlaxoSmithKline (GSK)

Rogers Communications (NYSE:RCI) has a market capitalization of $25.28 billion. The company employs 24,500 people, generates revenue of $12.266 billion and has a net income of $1.701 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.736 billion. The EBITDA margin is 38.61 percent (the operating margin is 22.15 percent and the net profit margin 13.87 percent).

Financial Analysis: The total debt represents 55.00 percent of the company’s assets and the total debt in relation to the equity amounts to 286.33 percent. Due to the financial situation, a return on equity of 47.19 percent was realized. Twelve trailing months earnings per share reached a value of $3.41. Last fiscal year, the company paid $1.55 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.39, the P/S ratio is 2.08 and the P/B ratio is finally 6.83. The dividend yield amounts to 3.46 percent and the beta ratio has a value of 0.80.


Long-Term Stock Price Chart Of Rogers Communications (RCI)
Long-Term Dividend Payment History of Rogers Communications (RCI)
Long-Term Dividend Yield History of Rogers Communications (RCI)


Take a closer look at the full list of cheap foreign dividend stocks with low beta ratios and adequate yields. The average P/E ratio amounts to 15.54 and forward P/E ratio is 11.32. The dividend yield has a value of 5.31 percent. Price to book ratio is 3.21 and price to sales ratio 1.97. The operating margin amounts to 17.94 percent and the beta ratio is 0.74. Stocks from the list have an average debt to equity ratio of 1.14.

Here is the full table with some fundamentals (TTM):

19 Cheap Foreign Dividend Stocks (Click to enlarge)

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Related stock ticker symbols:
FTE, SKM, AZN, EC, VIV, TOT, SNP, PSO, BCH, ENL, SJR, RUK, GSK, BSAC, ABX, NTT, NGG, RCI, VOD

Selected Articles:

*I am long AZN, GSK. I receive no compensation to write about these specific stocks, sector or theme. I don't plan to increase or decrease positions or obligations within the next 72 hours.

For the other stocks: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.