Hilary Kramer is the editor of GameChangers, Breakout Stocks Under $10, and High Octane Stocks, published by InvestorPlace Media. She is also a weekly commentator on Nightly Business Report, and author of The Little Book of Big Profits from Small Stocks. She has 25 years of investing experience, first as an analyst, then as a portfolio manager, investment banker, and hedge fund manager, and has managed more than $5 billion in global private equity and publicly traded investments. She received an MBA from the Wharton School of Finance at the University of Pennsylvania and within a decade was recognized as one of the best equity investors on Wall Street.
Veteran investment expert Hilary Kramer has come up with six global stocks with attractive yields that she likes now, and she shares them here.
Finding dividend yield amongst the global rubble. I’m here with Hilary Kramer, and we’re going to talk about some of the great income stocks outside US borders.
That’s absolutely right. There are companies like Credit Suisse (CS), once a great, well-respected bank that will be again. With Credit Suisse, you have close to a 5% dividend yield and a company that’s growing back their base of asset managing, winning the trust again of their customers.
Remember, the global meltdown of 2008-2009 impacted every country in the world, and especially Switzerland, where there was a lot of reputational risk that took place there. Credit Suisse is one you want to watch.
The others that I really like that have come off hard are some of the telecom global players like Telefonica (TEF). Now this is a risky one, but TEF is going to give you close to a 16% dividend yield.
Telefonica is the telephone operator out of Spain, but really it’s a way to play Latin America with some of the largest strongholds in places like Sao Paulo, Rio and then countries like Bolivia, Uruguay, and Paraguay. Telefonica is a Latin American way to play the telephone business.
Another company, France Telecom (FTE). Again, such a high dividend yield, and France Telecom has investments across Eastern Europe and is very advanced in their telecommunications. They’ve bid and they’ve won a lot of mandates as well in Africa, where the penetration is probably still in the single digits. It's one that has already still stayed strong, but I love.
If you want a safe telecom company that’s European, Vodafone (VOD). You’re going to hear a lot about Vodafone. The Olympics are coming. There you have over a 5% dividend yield, and I would say Vodafone as I talked to many of my colleagues in Europe will tell you that Vodafone is one of the best managed, well-run companies in all of Europe so you can’t go wrong there.
Some other companies just to really think about is Sanofi (SNY). It used to be Sanofi Aventis. SNY is a French pharmaceutical company. You have more than 4% dividend yield and divisions like animal health, global vaccines, diabetes, and hypertension.
France is down, the market is down, concerns about implosion in Europe and who’s going to end up leaving the euro...but Sanofi is a global company. You can’t go wrong.
Now keep in mind, you might pay a little more tax. There’s some double taxation that takes place on some of these dividend yields, but you still come out ahead rather than paying not more than 2% or 2.5% dividend yield in the US. And there’s the upside.
I just have to mention one last stock, ABB (ABB). It's the Swiss electrical generating company, a 5% dividend yield, down to $16. Has just been destroyed, but we need to upgrade our electrical grid system around the world, and even build out from origination in places like Africa and China. Buy ABB. Only upside left.