GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Looking For An International Dividend Treasure

September 26, 2012 | About:
In my quest to build a solid and diversified passive income cash flow, having a solid sustainable dividend portfolio is a major part of that both currently and in the future. Last week, I had a mission of looking through hundreds of US listed international companies that could be good candidates to add international diversification. I did end up coming up with 6 names which I decided to look into today. I will be using the top 20 things that I look at when judging dividend stocks.

Dividend Metrics



TickerYZCCHLBHPSSLSNP
NameYanzhou Coal Mining Co LtdChina Mobile LtdBHP Billiton LtdSasol LtdChina Petroleum & Chemical Corp
Current Dividend Yield6.193.833.356.563.44
5 year Dividend Growth25.4811.7818.9714.3515.57
1 year Dividend Growth0.326.7610.8924.5134.26
Obviously, there are many strong names here and I also looked at the longer term history of these companies. SSL is without a doubt my top name with all of the other names coming in close. YZC’s numbers look extremely impressive but they have not been as consistent, pay an annual dividend and have less history.

Company Metrics



TickerYZCCHLBHPSSLSNP
NameYanzhou Coal Mining Co LtdChina Mobile LtdBHP Billiton LtdSasol LtdChina Petroleum & Chemical Corp
Sales Growth (1 year)41.98.810.6818.9631.28
Sales Growth (5 year)31.999.9211.559.1224.12
EPS growth (5 year)50.8911.3123.35420.1946.73
P/E ratio5.0211.1111.89.39.25
P/E Next Year10.5411.69127.876.02
Margins growth-1.79N/AN/A-2.37N/A
Payout ratio32.5143.1438.949.335.52
Return on Equity21.6820.5525.1420.2516.42
Many more strong candidates but I have to say that YZC looks incredibly solid doesn’t it? Many of the others also have important strengths!

Stock Metrics



TickerYZCCHLBHPSSLSNP
NameYanzhou Coal Mining Co LtdChina Mobile LtdBHP Billiton LtdSasol LtdChina Petroleum & Chemical Corp
Trend Analysis-75905555-85
Price14.5554.9668.0643.9191.56
Trading Volume266471.0625895206.31252219923.25235817.140672970.86719
It becomes difficult to judge this criteria only but obviously the top trend analysis score is China Mobile.

Industry



TickerYZCCHLBHPSSLSNP
NameYanzhou Coal Mining Co LtdChina Mobile LtdBHP Billiton LtdSasol LtdChina Petroleum & Chemical Corp
Industry (declining, volatile, etc)CoalCellular TelecomDiversified MineralsChemicals-DiversifiedOil Comp-Integrated
Many different industries here but it does seem like materials/energy are strong. I guess the main point here is that all of these candidates could be very strong candidates for your portfolio, it largely depends on what the best fit is. For the USDP, I already have a lot of money invested into energy stocks so that is one sector that I am staying away from. I would be very tempted to go for YZC or SSL… how about you?

Disclosure: No positions on these 6 stocks


Rating: 3.4/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK