Tuesday, September 2, 2008

Attractively Valued International dividend stocks

Ever since the broad market indexes entered into bear market territory and the dollar stopped falling against most of the major currencies, I have been checking the international dividend achievers list for bargains. I came up with the following dividend stocks list, using the followoing screen criteria:

1) Company has consistently increased dividends for more than 5 consecutive years
2) The P/E ratio is less than 20
3) The Dividend Payout Ratio does not exceed 50%
4) The dividend yield is equal to or higher than the dividend yield on the S&P 500

This screen selected 38 out of the 97 international dividend achievers in the index. You could check out the list from this link as well.


As usual this list is just a starting point. Before you leap into buying these stocks always check out at least the ten year financials trends in order to determine how your potential investment has performed over time. In addition to that try reading the annual reports but don’t get caught up in recent developments which would prevent you from seeing the big picture.

Relevant Articles:

- International Dividend Achievers for diversification
- Diageo (DEO) Dividend analysis
- My Dividend Growth Plan - Diversification
- Introduction to Currency ETF’s

7 comments:

  1. I enjoyed your Diageo post. This is a stock I recently purchased. I'm currently looking at National Grid PLC. I would be interested in your analysis including dividend coverage and safety (debt). Thanks, Don

    ReplyDelete
  2. Don,

    Thanks a lot for stopping by. I would look into National Grid (NGG) ADR's and try to anlayze it.

    ReplyDelete
  3. Interesting list of stocks.I am watching a few of them.thanks for the post.I think utilities like NGG etc. are attractive at these levels.

    ReplyDelete
  4. Thank you for the article can u make the chart larger to read the data more easily?

    why is a p/e of 16-18 for a stock valued reasonably if it is growing at lets say 7-9%? Many of these div plays have higher p/e's to their growth rate.

    ReplyDelete
  5. TFS,

    Thanks for stopping by. I will have to analyze NGG. The only thing that worries me there is the fact that I could find only 5 years worth of data for this stock. I'll keep digging.

    Anonymous,

    If you follow the link above the table, you will find a google spreadsheet that has a bigger visibility than the embedded one on the site.

    I myself has set a rule to not pay more than 20 times earnings for a stock in order to avoid losing money by chasing "hot growth" stocks.

    I don't think that P/E ratios have to be equal to the growth rate of earnings.

    ReplyDelete
  6. TTM Earnings and therefore P/E don't look right for UL.

    Report I have has earnings at $1.91 not $7+.

    ReplyDelete
  7. Anon,

    Yahoo Finance claims that the EPS is $7.

    I would love to have some screener with reliable data.

    ReplyDelete

Questions or comments? You can reach out to me at my website address name at gmail dot com.

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