Many companies raise the dividends on their common stock year over year. There are some stocks whose dividends have more than doubled in six years. In this article let's review ten such international stocks and see how they have fared so far this year.
For this study, the stocks were analyzed using the following criteria:
1. Only non-financial stocks were used.
2. Dividends must have doubled or more than doubled in the past 5 years.
3. Stocks that cut or reduced dividends in those five years did not qualify.
4. All stocks must have been foreign stocks.
5. Evaluated only common stock.
6. Excluded tax and currency fluctuations.
5-Year Historical Dividend Growth Rate
|Company||Ticker||5-Year Dividend Growth Rate|
|Veolia Environnement SA||VE||17.08%|
|Telecom Corp. of New Zealand Ltd.||NZT||12.09%|
|British American Tobacco plc||BTI||12.87%|
|Repsol YPF SA||REP||32.59%|
Magyar Telecom (MTA) has the best 5-year dividend growth rate at 52.45%.The second best dividend grower is Encana (NYSE:ECA) from Canada with 45.28%.
Ten Dividend Doubled Stocks Year-To-Date Change and Current Dividend Yield
|Company||Ticker||Year-To-Date Change||Current Dividend Yield||Sector||Country|
|Veolia Environnement SA||VE||-50.09%||4.16%||Water Utility||France|
|Telecom Corp. of New Zealand Ltd.||NZT||-40.10%||11.31%||Telecom||New Zealand|
|Sasol Ltd.||SSL||-11.22%||2.10%||Chemicals||South Africa|
|Enel SpA||EN||-19.11%||6.89%||Oil and Gas||Italy|
|EnCana Corp.||ECA||-1.08%||2.56%||Oil and Gas||Canada|
|British American Tobacco plc||BTI||-14.61%||2.64%||Tobacco||UK|
|Repsol YPF SA||REP||-27.16%||5.51%||Oil and Gas||Spain|
Note: Data listed above are thought to be accurate at the time of posting. Do your own research before making investment decisions.
1. The above list is dominated by Telecom and Energy (oil and gas) stocks. While the oil and gas stocks are to be expected due to rising prices in the past few years, the telecom sector is a surprise.
2.MTA and Telecom Corp. of New Zealand (NZT) have current high dividend yields. New Zealand stocks are known for their high dividend payouts. So the lone Kiwi stock listed in the US made it to the list. Magyar Telecom is a consistent stable performer from Hungary. The other telecom stocks Telefonica (NYSE:TEF) and Portugal Telecom (NYSE:PT) have above average dividend yields as well.
3. Due to rising crude oil and natural gas prices in the past years, energy stocks have had tremendous runs. The Canadian oil and gas producer EnCana (ECA), the Spanish company Repsol (REP) and Italian Enel (EN) have high current dividend yields .
4. The French utility Veolia (NYSE:VE) has a decent dividend at 4.16% but the stock is down over 50% this year. Probably a good entry point at the current price.
5.Though Sasol (NYSE:SSL) is classified as an oil and gas stock, this South African major has interests in the chemical business also. Sasol is now in its growth phase with the company announcing R70B expansion plans for the next three years. The projects will be undertaken in countries like Nigeria, Qatar and Papua New Guinea.
6. British American Tobacco (NYSEMKT:BTI), is a UK based company engaged in the tobacco business with brands like Dunhill, Kent, Lucky Strike, etc. BTI is an international tobacco play. Recently BTI expanded operations in Turkey after a major acquisition there. Some of its competitors are the American Phillip Morris International (NYSE:PM) , Imperial Tobacco (ITYBY), etc. With a decent yield, BTI is a long-term growth stock.
The above ten non-financial stocks are worth watching through the rest of the year and in the future due to the attractive dividend yield and past dividend increases.