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Top International Dividend Stocks - European Telecom

May 23, 2012 | About:

For several months now, I have been able to put together lists of top international stocks mostly sorting them in terms of dividend yields. We did take a deeper look at some of those names in greater detail such as Vodafone (NASDAQ:VOD) while also adding a stock with great international exposure in Aflac (AFL) to both the Ultimate Sustainable Dividend Portfolio and one of the 4 stocks that I picked in this year’s stock stock picking competition. I’ve written about a critical aspect of dividend investing in the past which are more critical than ever when looking at international dividend stocks:

-looking beyond dividend yield

If you take a deeper look at the top dividend yields for international stocks you will see a very strong trend for European stocks that are coming out near the top of those rankings. That is a group of stocks that I am personally very prudent before buying. Why? Mainly these reasons:

European Chaos:

-Europe seems to be nearing a cliff in many different ways with Greece and other nations in serious trouble. One of the big results has been a very difficult time for companies operating there, especially banks located in countries such as Greece and Spain. Citizens in those countries have been increasingly worried about what will happen and continued to move their assets to foreign banks, especially in Germany. Thus, I would not be buying dividend stocks of such banks even if they offer great dividend yields.

European Telecoms:

-While there are also many concerns about many of these companies which have been at the top of previous international rankings but also US ones (with FTR at the very top), many of these companies pay high dividends that are unfortunately not sustainable. I think it’s critical to consider the long term perspectives for these companies before starting to buy them, as I had done when looking into Vodafone (NASDAQ:VOD).

When It’s Too Good To Be True…

Look at the rankings and you will see the very top dominated by YPF SA, an Argentina-based oil company which is stuck in the middle of huge changes. It remains unclear how the company will be able to keep operating on a private basis and pay reliable, sustainable dividends. Why? The Argentinian government is actually taking over the company. How will it impact shareholders? That remains to be seen. You can see some posts about it on Marketwatch for example. Personally I’m staying away:)

As you can see, there are no miracle, 10% or 15% dividend yield stocks but there are several other high quality candidates, which you can see here:

TickerNameIndustryPriceDividend YieldPayout Ratio
YPFYPF SAOil Comp-Integrated12.4526.88N/A
PTPortugal Telecom SGPS SATelephone-Integrated4.515.75400.5
STDBanco Santander SAConsumer Banks5.7915.5999.45
BMABanco Macro SAConsumer Banks13.9514.93N/A
ECEcopetrol SAOil Comp-Integrated59.2414.8138.58
FTEFrance Telecom SATelephone-Integrated13.1813.5395.21
NZTTelecom Corp of New Zealand LtdTelecom Services9.9611.93211.25
AVAviva PLCLife/Health Insurance8.6811.66102.73
IRSIRSA Inversiones y Representaciones SAReal Estate Oper/Develop7.4111.59N/A
PVDAdministradora de Fondos de Pensiones Provida SAInvestment Companies78.3110.47N/A
VIPVimpelCom LtdTelecom Services8.689.59221.72
AZNAstraZeneca PLCMedical-Drugs41.629.3736.84
GFAGafisa SAReal Estate Oper/Develop2.538.99N/A
BSIAlon Holdings Blue Square Israel LtdFood-Retail2.78.95126.02
TEFTelefonica SATelephone-Integrated12.558.33135.16
WBKWestpac Banking CorpConsumer Banks101.948.2567.27
BBVABanco Bilbao Vizcaya Argentaria SAConsumer Banks6.287.7268.55
TI/ATelecom Italia SpATelephone-Integrated7.517.67N/A
NGGNational Grid PLCGas-Distribution52.847.6368.81
CTELCity Telecom HK LtdTelecom Services10.34997.0973.71
TEOTelecom Argentina SATelephone-Integrated12.487.05N/A
SFUNSouFun Holdings LtdInternet Content-Info/Ne14.36.850
CPLCPFL Energia SAElectric-Integrated23.956.8381.08
TLKTelekomunikasi Indonesia Persero Tbk PTTelecom Services33.766.67N/A
BCACorpbancaConsumer Banks18.986.49N/A
SIDCia Siderurgica Nacional SASteel-Producers6.686.4625
VEVeolia Environnement SAWater12.186.43N/A
ENLReed Elsevier NVPublishing-Books21.966.4269.79
RUKReed Elsevier PLCPublishing-Periodicals31.266.4266.58
AWCAlumina LtdMetal-Aluminum3.746.36115.64
SNPChina Petroleum & Chemical CorpOil Comp-Integrated91.216.2135.52
ATAIATA Inc/ChinaComputer Software6.816.020
BTIBritish American Tobacco PLCTobacco96.135.9480.1
BAKBraskem SAPetrochemicals10.895.92N/A
TOTTotal SAOil Comp-Integrated44.395.8843.9
EOCEmpresa Nacional de Electricidad SA/ChileElectric-Integrated47.85.72N/A
APSAAlto Palermo SAReal Estate Mgmnt/Servic14.975.7N/A
EENI SpAOil Comp-Integrated40.145.4752.8
FBRFibria Celulose SAPaper&Related Products6.535.17N/A
FLYFly Leasing LtdTransport-Equip&Leasng12.435.151886.38
BPBP PLCOil Comp-Integrated37.855.0716.9
TMXTelefonos de Mexico SAB de CVTelephone-Integrated#N/A N/A5.06N/A
PUKPrudential PLCLife/Health Insurance21.64543.09
PSOPearson PLCMultimedia18.134.9935.21
GSKGlaxoSmithKline PLCMedical-Drugs44.434.9471.43
TITelecom Italia SpATelephone-Integrated9.314.93N/A
CRHCRH PLCBldg Prod-Cement/Aggreg18.174.9276.16
CHTChunghwa Telecom Co LtdTelecom Services30.84.8890
ENIEnersis SAElectric-Integrated17.844.86N/A
CIGCia Energetica de Minas GeraisElectric-Integrated16.944.5687.97

Rating: 3.0/5 (5 votes)


Carolineatwyatt - 3 years ago    Report SPAM

This is a great list. I work at an investment publishing company, Wyatt Investment Research and one of out analysts recently came out with a list of some of the top international dividend stocks. Vodafone made number 3. Please have a look and let us know what you think!

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