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 following 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, try reading the annual reports but don’t get caught up in recent developments which would prevent you from seeing the big picture.

Disclosure: None

Comments

[arturo52:]

Forgot to put BLX on the list

2008 Sep 03 11:46 AM

[Dividend Gr...:]

Arturo,

Actually BLX didn't make the cut because of its erratic dividend history, it wasn't included in the Mergent's International Dividend Achievers list.

2008 Sep 03 03:06 PM

[couldashoulda:]

DS
Thanks for the fine analysis. One worry --- Some of these have a high(er) Div yield because the stock has dropped significantly over the past x months. Is there anywhere someone might have insight on this potential problem other than doing the homework you identify.
I'm lazy. Thanks again

2008 Sep 03 06:34 PM

[Old Trader:]

couldashoulda,

Yeah, that's usually the case...a high yield results (at least in large part) from a falling price. The "trick" is trying to figure out whether the falling price is due to the "baby being thrown out with the bathwater"...(stock's in a sector thats being hammered), or whether there are serious problems with company. Also, are the problems only a quarter, or two of setback, or is the business model really "broken"?

The only way to tell is by crunching the numbers.....and DS might read 'em one way.....you or I might read them another....sorry, no "free lunch", :-)

2008 Sep 04 01:01 AM

[jaedi:]

Watch out for Allied Irish Banks. Although AIB is relatively well managed, Irish financials in general have far more to fall before they reach a floor. Irish banks balance sheets are full of toxic assets. In Ireland they don't call it subprime but mortgages were given at ridiculous multiples of gross salaries for property that was over-valued to a much greater extent than in the US. Undeclared credit union (i.e. savings & loans institutions) are used by property buyers to pay for deposits which drives up the effective salary multiple even more. They are also over-exposed to property developers who have speculative holdings in agricultural land priced at over 7 times the average European value. Construction has collapsed across the board and the banks will be left holding worthless loans to bankrupt property developers. A silver lining is their ownership of a large Polish bank and other assets in Eastern Europe.

2008 Sep 17 05:43 PM