Hungry for reliable income, investors have been embracing dividend-paying blue-chips. Plenty of solid utilities and consumer companies yield 3%. That seems like a rich payout at a time when 10-year Treasuries yield 2.0%. But to get an even higher yield, consider funds that focus on foreign dividend stocks. Many foreign blue-chips yield more than 4%. Forward International Dividend(FFINX), a mutual fund, yields 5.9%.
Besides paying higher yields, foreign dividend payers tend to be cheaper than their U.S. counterparts. While the S&P 500 has a forward price-to-earnings ratio of 13, the stocks in the Forward fund have a P/E of 8.6. Foreign stocks have traditionally paid higher yields than their U.S. counterparts. Investors in many countries have preferred fat dividends, and companies have paid out relatively large amounts of their earnings.
Source: The Street
Related Articles:
- Why Dividends Matter
- 2011 Was A Great Year For Dividend Stocks
- Utilities Stock Funds Were 2011's Bright Star
- 2011 Dividend Increases Nearly Doubled, and 7 Dividend Stocks that Led the Way
- 6 Dividend Stocks For The New Year
Fat Yields From Foreign Dividend Funds
Posted by D4L | Thursday, March 01, 2012 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
I am a Brit who mostly invests my personal money in dividend stocks in the US and UK. I like companies where I do not have to become an "expert" in whatever they sell. For example, biotech does appear to have a high growth future, but I am just not comfortable buying into a sector where one almost needs to be a doctor or full time analyst to understand it. I took a look at FFINX, and overall I like it. My main problem with it would be the expense ratio though, which is a bit on the high side and would obviously cut into the dividend payouts.