Five Low-Cost Foreign Stocks for Dividend Investors

Five Low-Cost Foreign Stocks for Dividend Investors

Check out these foreign companies that bring high-dividend profit and returns for their investors.

What makes a foreign firm profitable? It has to have low-cost stocks and low price-earning ratios and good returns for dividends. Thus, with the diversification of the portfolio, dividend investors can get better profits.

International equity yields a profit not compatible with US stocks lots of times. That has big disadvantages. I am very well-versed in this issue and have years of experience with this.

Foreign stocks are more susceptible to fluctuations, especially for those cases where the USD goes up – those equities outside the States can be lagging. Thankfully, this is a cycle that repeats itself over the years.

Also, foreign stocks pay dividends only two times annually, since lots of those firms report their profit two times every year. USA’s ADR and ADS do so four times a year and pay out the same way since we are talking mostly about holders from the States and the firm sees the cost of the stock as USA-made.

Lots of foreign firms pay dividend investors as part of their earnings two times a year. Thus, dividends can change depending on the returns. The firms from the States pay out reliable dividends that have the tendency to increase.

Here are 5 stocks worth looking into and investing. Yes, their dividend returns are bigger than average and are paid out quarterly! The cost-earning ratio is also lower.

BP Midstream Partners (BPMP)

Dividend yield: 12.5%

5 Cheap Foreign stocks good for investors in dividends

BP is non-US equity with a good dividend yield of 10.9 percent. But let’s concentrate on its spinoff firm, BP Midstream Partners. BPMP has a bigger return on dividends when compared to BP.

BPMP listens in the States that concentrates only on the oil and gas lifecycle, a.k.a. operating them onshore and offshore via pipelines.

Firms want to storage those commodities, so their assets are almost totally full.

Their Q1 dividend was 34.75 cents for a share, so a yearly one is 1.39 USD. The price today was eleven dollars, so the stock return was at 12.5 percent. That’s better than BP’s distribution return of almost eleven percent.

They had great numbers for Q1 since the distribution was covered by earnings well over one time. They were also aiming a 5 percent increase when compared to the previous year in its allocation to shareholders.

BPMP is very competitive and inexpensive at 7.3x profits, with a zero-cost cash flow return of 16.8 percent and a dividend yield of 12.5 percent. Dividend investors should watch the firm closely.

5 Cheap Foreign stocks good for investors in dividends

Publicis Groupe (PUBGY)

Return on dividends: 4.9 percent

5 Cheap Foreign stocks good for investors in dividends

This advertisement and dig. marketing firm from France dabbles in tech, media, consulting and owns famous names like Leo Burnett and Saatchi & Saatchi.

They deal on the over-the-counter marketplace and the dividend return is circa nine percent, while the forward cost-earning ratio is circa seven. This means they bring in profits and come at a cheap price.

They announced the revenue in April and it went up by seventeen percent, as well as the info of acquiring Epsilon. The organic growth fell by almost 3 percent during the last 12 months. The business didn’t report on the profit, since that is done two times a year.

Also, PG cut dividends by half and there are 4 PUBG ADRs for a French basic share. This means their profit is 4.9 percent and the firm will pay the dividend in the ninth month.

PG is thus a low-cost and competitive international asset with a good dividend return.

5 Cheap Foreign stocks good for investors in dividends

Rio Tinto Group (RIO)

Return on dividends: 8.4 percent

5 Cheap Foreign stocks good for investors in dividends

They are headquartered in London and are worth almost 75 billion dollars. The mining firm dabbles in iron, silver, copper, gold, etc…

They pay out dividend yields quarterly, but we are not sure they will continue down that road. They probably will, since there is no indication of doing otherwise. Their stock returns are 8.4% when looking at their previous dividend of 3.82 USD dividend for every share in 2019.

They display consensus financial info on their web page, like production, profits, estimates… Foreign stocks are allowed to this, while US stocks aren’t.

We thus estimate that their profits will be 5.04 USD for ADR in 2020. They need worldwide lockdowns to ease up a bit. This will heighten demand for worldwide commodities like copper, and their price will go up and the firm will earn more.

Their stock is then really low-cost, and when you count in the 8.4% dividend, RIO stock provides nice value for those who invest.

5 Cheap Foreign stocks good for investors in dividends

Vodafone Group (VOD)

Return on dividends: 6.6 percent

5 Cheap Foreign stocks good for investors in dividends

This is a telecom and cable firm from the UK with a value of 43.8b USD and their ADR is name-checked on the Nasdaq.

Their stock has a big dividend return of 6.6 percent and investors will like it that way. They pay out two times each year.

What is a bit strange is that, even though their profit comes in GDB, they report in euro cents. So they announced that their fiscal year, that ended with March, was stable at nine euro cents for every share. There are ten standard shares for each VOD ADR. The exchange level is 1.08 USD for EUR, thus the USA dividend for VOD ADR was circa 97 cents. The yearly return was thus 6.6 percent.

What messed up things more was the forthcoming last dividend, froze at 4.5 euro cents for ordinary share. That is to be paid out on August 7 this year. So the forthcoming dividend return is around 3.3 percent. This will be dependent on the exchange level when the ADR payment is set.

The company’s profit for the end of the fiscal year was good. They believe their next end of the fiscal year will see their free cash flow slump a bit to almost 5.5. billion GBP. So the dividends will remain the same.

This all means that their stocks are stable and high-dividend for income investing.

Total (TOT)

Return on dividends: 8.8 percent

This is a firm from France dealing with oil and gas. Their dividends are paid out four times a year. Three are called ‘interim’ and the final one is called, well, the ‘final’ one.

Their dividends went up to five percent to 2.68 EUR for a share in the last 12 months. So this amounts to 2.92 USD for each ADR.

This resulted in the stock having a good return of 8.8 percent for investors.

We believe the stock is low-cost at only 7.5 times of profits. In showing their profits from the first quarter, they reported a break-even level of 25 dollars for an oil barrel.

There is no reason then to believe they won’t be profitable in this Q. They will recover even more as the economy and oil prices recover.

This is a nicely-priced stock at less than eight times 2020’s profits, seeing their newest results.