For U.S. investors seeking to invest in non-U.S.-based companies, ADRs are the best solution. 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.
This article discusses Aviva and Smith & Nephew, two British ADRs that trade in different industries. Both companies deliver strong results and are leaders in their sectors. Furthermore, they both demonstrate momentum and are great dividend income picks both for the short- and the long-term.
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Crude oil tanker stocks can be a great way to boost the yield of an investment portfolio. Especially, for investors who like diversification, these investments are ideal to offer an additional income and trade off the losses incurred by other stocks. However, before selecting crude oil tanker stocks, investors need to be aware of how the oil tanker industry operates as well as the pros and cons of each company since the tanker business can be highly risky.
This article discusses three small caps that operate in the Crude Oil Tanker Industry. All three companies have an average dividend yield of 11.2%, which is above the industry average of 7.52%, and an average payout ratio of 144%, slightly lower than the industry average of 187%. Even more impressively, their average beta is 0.96... Read more
The recent oil price collapse has had a great impact on the Canadian economy, even beyond the energy sector. Insurance companies and telecom firms confirm that the major concern of the energy sector is spreading. There are cases of companies that have achieved record profits in the previous years, yet now they experience a decline in their earnings, which inevitably leads to downsizing and the sharp cut of exploration investments.
Undoubtedly, companies that directly supply the oil, gas and mining industries have experienced the hardest hit. However, there are companies like the ones discussed in today’s article that have delivered strong results in the third quarter of 2015 and are expected to continue to deliver strong cash flows and shareholder value in the coming... Read more
Investors select small-cap stocks because of their growth potential. A small company with the ability to grow into a massive corporation is more likely to offer early investors tremendous returns than an already established company that potentially faces debt or corporate restructuring issues. The stock market offers a wide array of small caps that are big players, often mispriced, but definitely a solid bet for dividend investors.
This article discusses three small caps that trade in different industries. Although all three companies strongly underperformed Nasdaq and NYSE on YoY basis, they consistently deliver strong results. These companies deliver high-yielding income payouts, well above their industry averages, suggesting solid dividend payments. If fact, such investments can... Read more
Consumer purchases of sporting goods in the U.S. have increased 28.7% in the period 2005 – 2015 ($50.35 billion to $64.8 billion) and 21% in the period 2010 – 2015 ($53.56 billion to $64.8 billion). Furthermore, in spite of the shorter holiday shopping season and the unusually warm weather, the sporting goods industry remained strong and healthy. Through promotions, discounts and differentiated products, the sporting goods retailers have delivered strong Q3 2015 results and remain a good pick for dividend investors.
This article discusses three sporting goods retailers with different market caps and differentiated products. Their average dividend yield is 2.4% (average yield of consumer goods 2.22%) and their average payout ratio is 36.2% (retail apparel industry 23.74%).... Read more
Many investors shoot for the S&P 500 Dividend Aristocrats, the list of 50+ stocks handled by the S&P Dow Jones Index. Over the past 25 years, the Aristocrats have raised their annualized dividends per share. In addition, a research conducted by Research Affiliates finds that the group has outperformed the Large-Cap 1000, the High-Dividend-Yield 200 and the High-Yield, Low-Profitability 100 groups with a 5-year dividend growth rate of 18.6% and an average total return of 12.8% for the period 1964-2014.
Seeking for high dividend yields is, perhaps, the easiest way investors can buy income. Savvy investors who follow blue chips or smaller companies with a high growth potential know that by making the right picks and keeping them for the long-term, they can create a strong... Read more
Business services companies provide supplementary services to other players in the market. Although the business services sector has suffered from the recession, as smaller businesses have seized operations or have reduced the amount spent on outsourcing, there are businesses that have managed to sustain a competitive advantage and capitalize on corporate profit.
Normally, business services companies occupy a great share of the of the gross domestic product (GDP) and are closely related to how the economy performs. Given the business sector includes a wide variety of different types of businesses that provides services to accommodate other businesses rather than to meet the needs of specific consumer segments, it plays a major role in a country’s overall development. On the... Read more
For income-seeking investors, higher-paying dividend stocks are historically considered to generate income and be less volatile. Dividends not only provide a steady stream of income, but they also justify the reasons one has originally invested in a company. Due to prolonged times of exceptionally low interest rates, several industries have been massively leveraged, including the travel industry.
Travel related stocks have been in high demand over the past months, not only because they consistently deliver gains, but also because their gains keep on getting stronger due to the decline in oil prices. In fact, travel demand soars when oil prices slide. In addition, US-based Travel, Hospitality, and Leisure companies are expected to continue looking for international growth... Read more
Constructing a dividend growth portfolio requires selecting the safest stocks under the belief that they can meet your financial goals. Often, the outcome you expect doesn’t match the real picture of your portfolio returns, thus compromising your financial freedom.
Although many analysts and investors consider that to build a dividend growth portfolio you should invest in small cap stocks, there are fantastic blue chips that offer the opportunity to seek for higher yields, thus generating more dividend income.
This article discusses Wal-Mart, the leading company in the discount retail industry, a real blue chip stock that trades at a fair price, yet it is cheaper than its peers. However, Wal-Mart offers a strong competitive edge, justified financials, effective strategy... Read more
The theory holds that small caps thrive when the dollar becomes stronger, because smaller companies generate most of their revenues within the U.S and they rarely do business abroad. Given this, small caps offer investors the opportunity of realizing extremely high returns, while accepting a higher level of risk. Yet, by recognizing the potential of these companies, investors can realize remarkable long-term profits as sustainable growth keeps on making these companies more attractive.
There are several small-cap stocks in the financial industry that have delivered strong results in the last quarter or have managed to anticipate the volatility of the markets and sustain dividend growth. This article discusses three small cap companies that trade in the financial industry. All... Read more