Dividends4Life: Fat Yields From Foreign Dividend Funds

Fat Yields From Foreign Dividend Funds

Posted by D4L | Thursday, March 01, 2012 | | 1 comments »

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

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  1. agriculture investment // March 2, 2012 at 5:06 PM

    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.

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