Finding good stocks with reasonable valuations and good yields is difficult in this low yield global environment. However, here are two foreign-based firms with sound fundamentals as well as solid and growing dividend yields to consider.
Reed Elsevier (NYSE:ENL) - "Reed Elsevier NV provides information solutions in the areas of science, medical, legal, risk, and business sectors primarily in North America and Europe. The company's Elsevier division publishes scientific information books and journals in print and electronic forms for scientists, academic institutions, research leaders and administrators, corporations, and governments; publishes bibliographic data, indexes, and abstracts, as well as review and reference works; and provides abstract and citation database of research literature." (Business Description from Yahoo Finance)
4 reasons ENL is a solid buy at $25 a share:
- The stock yields over 4.6% and has raised its payout at a 4% annual clip over the past five years.
- The stock is selling near the bottom of its five year valuation range based on P/B, P/E, P/S and P/CF.
- The stock is showing increasing technical strength and just crossed over its 200 day moving average (See Chart)
- The company is selling at less than 10.5 times forward earnings and should grow revenues in the mid-single digits in FY2012.
Enersis S.A. (NYSE:ENI) - "Enersis S.A., an electric utility company, engages in the generation, transmission, and distribution of electricity in Chile, Argentina, Brazil, Colombia, and Peru. It owns and operates hydroelectric, thermal, and wind power plants. As of December 31, 2010, it had 14,833 megawatts of installed capacity with 195 power plants; and 13.3 million distribution customers covering approximately 50 million inhabitants". (Business Description from Yahoo Finance)
4 reasons ENI is a good bargain at under $20 a share:
- The stock looks like it has bottomed and just crossed its 200 day moving average (Stock Chart)
- The stock is selling at the bottom at its five year valuation range based on P/B, P/S, P/E and P/CF.
- The stock yields over 3% and has raised its dividend payment by approximately 11% annually over the past five years.
- The company serves a fast growing part of the world and this is reflected in its earnings growth projections. The company should earn $1.20 a share in FY2011, is expected to make $1.44 in FY2012 and analysts project earnings of $1.62 in FY2013.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in (ENI) over the next 72 hours.