The United States of America is one of the largest wealth
creation machines in the history of the world. According to Credit Suisse,
American stocks returned an inflation-adjusted annualized 6.5% between 1900 and
2014 – behind only Australia and South Africa, which lead all international
stocks at 7.4% each. Go, ‘Merica!
But while American stocks have been the better long-term
bet, they’re not always the best bargain. In fact, the U.S. market is priced to
deliver subpar returns over the next decade, whereas many international stocks
are downright cheap.
The cyclically adjusted price-to-earnings ratio (“CAPE”) is
more than double its long-term average. And according to John Del Vecchio,
co-manager of the AdvisorShares Ranger Equity Bear ETF (HDGE), “The median
price/sales ratio on the S&P 500 is the highest it has ever been in
history. We are three standard deviations above the average. You don’t need to
be a math whiz to understand that this is a big deal.”
But while U.S. stocks are looking bubbly, investors can find
bargains overseas.
Today, we’ll look at 10 solid international dividend stocks
for investors looking to add foreign exposure to their portfolios. Investors
will want to note that international taxes may apply, and that overseas stocks
have much more varied payout schedules than the balanced quarterly routine of
most U.S. companies. Still, even if Wall Street defies the laws of gravity and
continues to outperform its international peers, these stocks will provide a
steady stream of dividend income while we wait for market leadership to shift.
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