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One of the many traits dividend and income investors seem to share is that they like to base their investment strategy and portfolio holdings on verifiable past and present performance data in order to make a "factual" valuation analysis. If you were to ask these investors to name a fundamental rule they adhere to in their stock-picking approach, I would venture to guess most would respond with the following answer: “Stick with what you Know and Understand.” Something I can only concur with wholeheartedly!

As SA is primarily focused on U.S. investors and the U.S. market, I thought this article would be a good starting point to expand the horizon somewhat. Many large-cap companies sport a global footprint and as such many investors are probably already familiar with a large number of the companies I will list in this article. Even though their names and products may be known with many on SA, only few may have ever contemplated doing actual DD on these "foreign" companies or considered investing in non-U.S. entities.

The current market climate has been much debated in recent months. Given the complexity and deep-routed nature of the underlying problems, it’s safe to assume that we will be seeing increased volatility for the foreseeable future and valuations will remain in a state of flux somewhere between hope and fear, or should I actually say greed and fear.

I have yet to come across a value investor which is not familiar with Warren Buffett's world famous contrarian rule Numero Uno: “Be Fearful when others are Greedy, and be Greedy when others are Fearful.” And for those value investors I compiled the following list of companies. I took this morning’s share price of their Amsterdam listing and compared them with current 2012 consensus estimates for both their expected EPS and dividend yield, along with pay-out ratio.

I did so, because I feel current valuation of these companies, listed on both Amsterdam’s main AEX-index and the U.S. market, are attractive and provide opportunities for investors seeking both capital gains and dividends during the next few years. I used the gross estimated dividend amounts, as an increasing number of companies now offer a DRIP/SCRIP possibility to reinvest without having to pay the 15% withholding tax. The conversion rate used for EUR to USD is yesterday’s ECB EUR/USD exchange rate of 1.37.

Aegon NV (NYSE:AEG) is one of the world’s largest life insurance and pension groups. Aegon’s average 2012 EPS estimate currently sits at € 0.69 - $ 0.95. 2012 gross dividend is expected to come in at € 0.20 - $ 0.28. Compared with this morning’s share price of € 2.93, this comes down to a 2012 P/E of 4.25 and a dividend yield of 6.83% on a pay-out ratio of 28.99%. Global competitors are companies like AXA (OTCQX:AXAHY), MetLife (NYSE:MET), Prudential (NYSE:PRU) and Zurich (OTC:ZFSVY).

Ahold NV (OTCQX:AHONY) is a major international supermarket operator. Ahold’s average 2012 EPS estimate currently sits at € 0.99 - $ 1.36. 2012 gross dividend is expected to come in at € 0.38 - $ 0.52. Compared with this morning’s share price of € 8.43, this comes down to a 2012 P/E of 8.52 and a dividend yield of 4.51% on a pay-out ratio of 38.38%. Ahold’s competitors include Casino Guichard-Perrachon (OTC:CGUIY), Carrefour (CRERY.PK) and Wal-Mart (NYSE:WMT).

Akzo Nobel NV (OTCQX:AKZOY) is world’s largest producer of paints and coatings and a major supplier of specialty chemicals. Akzo’s average 2012 EPS estimate currently sits at € 3.99 - $ 5.47. 2012 gross dividend is expected to come in at € 1.63 - $ 2.23. Compared with this morning’s share price of € 32.07, this comes down to a 2012 P/E of 8.10 and a dividend yield of 5.08% on a pay-out ratio of 41.16%. Competition: BASF (OTCQX:BASFY), Dow Chemical (NYSE:DOW), DuPont (NYSE:DD).

Arcelor Mittal SA (NYSE:MT) is the world’s largest steel producing company, holds sizeable captive supplies of raw materials and operates extensive distribution networks. Arcelor’s average 2012 EPS estimate currently sits at € 2.73 - $ 3.74. 2012 gross dividend is expected to come in at € 0.54 - $ 0.74. Compared with this morning’s share price of € 12.63, this comes down to a 2012 P/E of 4.63 and a dividend yield of 4.28% on a pay-out ratio of 19.78%. Global competitors include United Steel (NYSE:X) and Nucor (NYSE:NUE).

Royal DSM NV (OTCQX:RDSMY) is a multinational life sciences and materials sciences-based company. DSM’s average 2012 EPS estimate currently sits at € 4.11 - $ 5.63. 2012 gross dividend is expected to come in at € 1.51 - $ 2.07. Compared with this morning’s share price of € 32.32, this comes down to a 2012 P/E of 7.86 and a dividend yield of 4.67% on a pay-out ratio of 36.74%. BASF and DuPont are also competitors of DSM, alongside companies like Kerry (OTCPK:KRYAY) and Nutreco (NYSE:NUO).

ING Group NV(NYSE:ING) is a global financial institution offering retail, direct, commercial and investment banking alongside asset management and insurance services. ING’s average 2012 EPS estimate currently sits at € 1.58 - $ 2.16. As the last portion of Dutch State Aid will be paid off no later than mid-2012, ING has indicated resumption of regular dividend payments. 2012 gross dividend is expected to come in at € 0.34 - $ 0.47 for full year. Compared with this morning’s share price of € 5.03, this comes down to a 2012 P/E of 3.18 and a dividend yield of 6.76% on a pay-out ratio of 21.52%. I personally expect them to pay dividend over H2 2012 only at this time. The spin-off for ING’s insurance activities is now expected H2 2012 – H1 2013. ING competes with all the major global financial institutions.

Royal KPN NV (OTCPK:KKPNY) is the leading Dutch landline and mobile telecom company, also expanding into the digital TV segment, with further operations in Belgium, Germany, France and Spain. KPN’s average 2012 EPS estimate currently sits at € 1.26 - $ 1.73. 2012 gross dividend is expected to come in at € 0.89 - $ 1.22. Compared with this morning’s share price of € 9.49, this comes down to a 2012 P/E of 7.53 and a dividend yield of 9.38% on a pay-out ratio of 70.63%. KPN’s primary competitors in the Netherlands and across Europe are Vodafone (NASDAQ:VOD) and Deutsche Telekom (OTCQX:DTEGY).

Royal Philips Electronics NV (NYSE:PHG) is one of the largest electronics companies in the world, organized in a number of sectors: Philips Consumer Lifestyle, Philips Lighting and Philips Healthcare. Philips' average 2012 EPS estimate currently sits at € 1.49 - $ 2.04. 2012 gross dividend is expected to come in at € 0.73 - $ 1.00. Compared with this morning’s share price of € 12.94, this comes down to a 2012 P/E of 8.68 and a dividend yield of 5.64% on a pay-out ratio of 48.99%. Competitors include companies like General Electric (NYSE:GE), Sony (NYSE:SNE) and Siemens (SI).

Randstad Holding NV (OTCPK:RANJY) is a worldwide temporary employment company specializing in flexible work and HR services. Randstad’s average 2012 EPS estimate currently sits at € 3.15 - $ 4.32. 2012 gross dividend is expected to come in at € 1.36 - $ 1.86. Compared with this morning’s share price of € 23.15, this comes down to a 2012 P/E of 7.35 and a dividend yield of 5.87% on a pay-out ratio of 43.17%. Competitors include Adecco (OTCPK:AHEXY) and Manpower (NYSE:MAN).

Royal Dutch Shell NV/Plc (NYSE:RDS.A) is the fifth-largest company in the world, the second-largest energy company and one of the six oil and gas "supermajors." Shell’s average 2012 EPS estimate currently sits at € 3.39 - $ 4.64. 2012 gross dividend is expected to come in at € 1.23 - $ 1.68. Compared with this morning’s share price of € 23.93, this comes down to a 2012 P/E of 7.06 and a dividend yield of 5.14% on a pay-out ratio of 36.28%. Competitors of course include juggernauts like Exxon (NYSE:XOM), BP (NYSE:BP), Total (NYSE:TOT) and Chevron (NYSE:CVX).

Unilever NV/Plc (UN, UL) is also a British-Dutch multinational, like Shell, owning many of the world's consumer brands in foods, beverages, cleaning agents and personal care products. Unilever’s average 2012 EPS estimate currently sits at € 1.71 - $ 2.34. 2012 gross dividend is expected to come in at € 0.93 - $ 1.27. Compared with this morning’s share price of € 22.66, this comes down to a 2012 P/E of 13.25 and a dividend yield of 4.10% on a pay-out ratio of 54.39%. Unilever's main rivals include Nestle (OTCPK:NSRGY) and Procter & Gamble (NYSE:PG).

Going through this impressive list of AEX-listed companies one has to agree that the Netherlands (fortunately) still packs a pretty big punch on the world stage, for such a small country at least. No longer as strong as the 17th-century, when New York was still called "New Amsterdam" and the Dutch East India Company (V.O.C.) still roamed the seas, but the Dutch mentality to focus on international collaboration and trade means that these companies can still compete with the best of them. Not to mention provide potentially attractive investment propositions at present!

Source: Investing For Income In International Dividend Stocks: The Dutch Edition