Eight international dividend stocks to diversify your portfolio.
In this challenging economic environment, it’s important for investors to think about reducing their risk profile in addition to seeking growth potential. That makes it prudent to hold a few international stocks in addition to the tried-and-true U.S. “blue chips” that you may own either individually or as part of an index fund. Geographic diversification helps smooth out local market disruptions to provide more consistent long-term returns. And when you pair that diversification with dividends, these investments can really help lower your risk to give your portfolio a strong foundation. Here are eight international dividend stocks to buy today.
Algonquin Power & Utilities Corp. (AQN)
Canada-based Algonquin is a modest regional utility, serving about 600,000 power and gas customers. That said, this for-profit company also specializes in water and wastewater services and operates nearly 170,000 specialized treatment facilities across a wide swath of the United States, from California and Oklahoma to Georgia and Massachusetts. Both energy and water are must-haves for any home or business, so this wide-ranging operation provides for consistent performance for Algonquin’s income-hungry shareholders. The stock currently yields 4.6%.
An international health care giant, AstraZeneca is a name that many U.S. investors may already recognize. Based in Cambridge, England, the company researches and markets prescription medicines for conditions that include cancer, cardiovascular disease, respiratory disorders and more. While many sectors of the economy go up and down, health care remains constant in any environment. That’s because patients will keep buying branded drugs like those sold by AZN to improve their quality of life. That lends itself to reliable revenue and consistent dividends for investors as a result. The stock currently yields 2.6%.
Brookfield Renewable Partners (BEP)
Headquartered in Bermuda, Brookfield owns an international portfolio of renewable power-generating facilities in North America as well as Colombia, Brazil, Europe, India and China. These facilities include hydroelectric dams and wind and solar farms. While the recent pandemic has really reduced the cost of fossil fuels like oil, it’s undeniable that alternative energy sources will remain a key element of the global economy for many years to come. That lends this international dividend stock some staying power. BEP currently yields 4.4%
Chunghwa Telecom (CHT)
Taiwan-based Chunghwa Telecom provides mobile data service, fixed-line internet access, telephone connections and cable TV services. With about 11 million total subscribers, it’s much smaller than domestic telecoms and even its larger peers in Asia. However, many Taiwanese see themselves as very much independent of mainland China and its influence, and this creates a distinct loyalty to firms like CHT and a reluctance to switch. That loyalty, coupled with a monthly billing cycle for must-have data services, makes this a reliable income stock. CHT currently yields 4%.
Fortis is another international utility stock, operating in Canada, the U.S. and the Caribbean. Collectively, it distributes electricity to nearly 600,000 customers and natural gas to about 1 million more. Utility stocks are among the most stable income investments on Wall Street as they have reliable sales from existing customers and the marketplace has tough barriers of entry for new competitors. That makes FTS a great bedrock investment if you’re looking for international dividend investments. The stock currently yields 3.7%.
Novo Nordisk (NVO)
NVO is a great long-term play on one of the biggest health care challenges around the world right now: diabetes. The Centers for Disease Control and Prevention estimate that 7% of American adults have Type 2 diabetes. Internationally, roughly 14% of Mexicans and almost 20% of Pakistanis have the condition. Denmark-based Novo Nordisk is a leader in diabetes testing and treatment, and will have a built-in revenue stream for many years as a result of this unfortunate trend. The stock currently yields 2.5%.
PLDT is a telecommunications company based in the Philippines with both wireless and landline operations as well as television services. It also has a few other business lines, including IT outsourcing and air transportation, which is admittedly strange. It’s the reliable monthly billing in PLDT’s communications line that should attract income investors. With more than 73 million wireless subscribers, this firm has double the footprint of domestic carrier Sprint without the weight of such stiff competition. PHI currently yields 6%.
United Microelectronics Corp. (UMC)
UMC is a semiconductor foundry that does business across Asia and North America. It’s not like some of the flashier chipmakers out there, such as Intel Corp. (INTC), because it doesn’t spend a lot of its time and money researching the next generation of semiconductor technology. Instead, it creates and assembles circuits and chips designed by other firms. The margins are lower this way, but there isn’t as much risk that the company will miss out on the next product revolution and be left behind. UMC simply keeps its factories cranking out whatever its clients need — and keeps a decent share of the profits to power its dividends. The stock currently yields 6%.
Add these international stocks to your portfolio:
— Algonquin Power & Utilities Corp. (AQN)
— AstraZeneca (AZN)
— Brookfield Renewable Partners (BEP)
— Chunghwa Telecom (CHT)
— Fortis (FTS)
— Novo Nordisk (NVO)
— PLDT (PHI)
— United Microelectronics Corp. (UMC)
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8 International Dividend Stocks for Diversification originally appeared on usnews.com