In 2015, the sales of automobiles in the U.S. have peaked at historic levels, setting a sales record of nearly 17.5 million vehicles, a 5.7% growth compared to the previous milestone of 17.4 million vehicles in 2000. In spite of the turbulent macroeconomic environment globally, the trend suggests improved margins, strong leverage in multiple regions globally and new capital investments. Through 2018, U.S. sales of vehicles are expected to be in line due to higher interest rates and an anticipated increase in the used cars.
This article discusses a small-cap and two mid-cap companies trading in the Automotive industry. Over the past 6 months, all three stocks performed great, suggesting high investor confidence and an upward trend. Their average debt-to-equity ratio is 0.27,... Read more
Many investors in dividend distributing shares may regrettably have first hand experience with dividend withholding tax. However, in my day-to-day practice as a tax advisor, it is my experience that
many investors are not aware that their tax burden can be somewhat relieved. A right to a tax refund may exist due to the workings of an applicable tax treaty between your country of residence and the
source country of your dividend income. On average between 40-60% of withholding tax may be eligible for a refund.
What is withholding tax?
Withholding tax is a type of tax levy that occurs in many countries. Within Europe, basically all major economies apply a withholding tax on dividends distributed to non-resident investors (e.g. France 30%, Germany... Read more
Grocery retailers have an average dividend yield of 3.54%, which is higher than the S&P 500 yield (2.17%). Normally, grocery retailers offer food, general merchandise, health and beauty care, and pharmacy products at competitive prices and their products are of superior quality aiming to attract and retain more customers. In the United States, the trends for the grocery store industry insinuate that consumers are looking for convenience, pushing retailers to expand and invest in fresh produce and foods.
This article discusses three grocery retailers, two large-cap and one small-cap, that trade on the NYSE and the Nasdaq. The small cap (Weis Markets) has outperformed the NYSE and its peers 10.67% YTD, whereas the two other companies have experienced losses YTD, like the NYSE... Read more
Many stocks of the London Stock Exchange also trade on stock exchanges like the NYSE or NASDAQ in the form of ADRs, offering a great opportunity to U.S. investors to capitalize on growth. ADR stands for American Depositary Receipt and it represents 100% ownership to the foreign company. ADRs trade in over-the-counter (OTC) markets, are issued by U.S. depositary banks and are typically equity rather than debt or money market assets. ADRs can offer high dividends like common U.S shares and their prices mirror the price changes in the foreign market. Of course, as there is always the risk of political events and macroeconomic instability, like a Brexit, one should be able to pick stocks that are offered at a relatively low price, keeping a long-term view.
This article discusses two UK... Read more
Real Estate Investment Trusts (REITs) allow you to invest in portfolios of large-scale properties by purchasing the relevant stocks. As a REIT stockholder, you can benefit from income investing in the real estate market, without actually owning a finance property.
In fact, owning and operating real estate requires thorough knowledge and patience, along with the danger of being highly leveraged and illiquid. This means that you cannot sell your property immediately for cash, plus you have to be able to evaluate your property and know how to calculated an annual return on investment. On the other hand, REITs offer you the benefits of owning equity through purchasing on the stock market.
This article discusses three mid-cap REITs that trade in the REIT - Healthcare Facilities... Read more
There are many Canadian stocks that trade both on the NYSE (as ADRs) and the Nasdaq stock markets. Mind you, that a single ADR may represent a group of foreign shares held by the bank. If dividends are issued in the company’s country of operation, in this case Canada, the dividends will be deposited in the bank, and will be converted to U.S. dollars before they are distributed to the ADRs holders. Another thing you need to know is that tax treatment of ADRs is the same as U.S.-listed securities, except if there are foreign withholding taxes for income distributions, such as dividends or sale proceeds.
This article discusses three Canadian companies that also trade on the NYSE. Their average debt-to-equity ratio is 0.52, which, combined to an average beta of 1.15, makes these... Read more
The advertising environment is becoming increasingly competitive, leading more and more adverting and marketing companies to outsource their services. Companies with large internal advertising segments consider it more effective to hand their operations to specialized businesses so that the can remain on top of the competition and deliver strong results. In addition, advertising companies, being normally structured as corporations, they deliver strong dividend and have dividend yields that are above average compared to the industry.
This article discusses three advertising and marketing companies, two mid-caps and one large-cap, which trade on the NYSE and the Nasdaq and have outperformed the market by more than 10% YoY. At the time of the writing, all three companies trade really... Read more
The dividend yield is often a good indication of how much cash flow investors are getting for every dollar they invest in an equity position. The milestone of 3% is considered a high dividend yield. If you require a minimum stream of income for your investment, you can kind of secure your cash flow by investing in stocks that pay high and relatively stable dividend yields.
This article discusses three small-cap and mid-cap independent investment companies that trade on the NYSE and the Nasdaq Composite Index. All three companies currently trade close to their 52 week high. Their average dividend yield is 5.66%, way above the milestone of 3%, and their average payout ratio is 85%. Given that the industry average payout ratio is above 130%, the average payout ratio of these companies... Read more
Package delivery companies are responsible for transporting a product from its point of origin to its destination. Also known as logistics companies, package delivery companies aim to deliver growth and profitability in a challenging industry that requires sharp strategic choices. The geographic coverage of transportation and logistics companies has the potential to reward strategic decision with a focus on outperforming market expectations. At the same time, the industry has low barriers to entry and intense competition, creating new opportunities to enter new markets and redefine existing business models.
This article discusses FedEx and UPS, the leaders in the Transportation & Logistics Industry. Both companies have outperformed the NYSE Composite Index and the S&P500 YTD... Read more
The U.S. pharmaceutical industry is highly concentrated with nearly 50 companies accounting for 80% of total revenues. The profitability of each company depends on the ability to discover, develop and sell new drugs. Typically, larger companies capitalize on their economies of scale in research and development while smaller companies effectively compete in drug specialization for the treatment of specific diseases and in partnerships with large drug manufacturers.
This article discusses three large cap pharmaceuticals trading on the NYSE. Their average price is $65, with an average dividend per share $2.05 and an average dividend yield of 3.20%, in line with the average dividend yield of the industry. In the coming quarters, all three companies are expected to sustain strong... Read more