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Guraaf
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I immigrated to the US in 2006. I started investing in India in 1999 just when the Indian markets were taking off. India had its share of Irrational Exuberance and eventually I lost quite a bit in Tech stocks from 1999 to 2002. After that I slowly moved on to cyclical (capital goods,... More
  • Swiss Dividend-paying stocks 0 comments
    Dec 28, 2011 6:10 AM | about stocks: NVS, NSRGY, ACE, STM
    Close on the heels of German and British dividend paying stocks, I now discuss my pick of Swiss dividend yield stocks.  Switzerland is economically very stable and hasn't shown great fiscal responsibility.  The Swiss Franc is also a nice diversification along with other global currencies like the US Dollar, British Pound, Euro and the Yen.  Swiss companies do deduct the foreign taxes at the rate of 35% though you can claim dollar-for-dollar tax credit in regular brokerage accounts at the time of filing taxes via Form 1116.  This benefit isn't available for tax-deferred (retirement) accounts so the Swiss stocks may not suited for such accounts.
     
    1. Novartis (NYSE:NVS) - 4%.  This is my favorite pharma stock that has grown dividends at a CAGR of 17% over the last 5 years.  It has substantial presence in all major pharma segments and has gone big time into eyecare with purchase of Alcon that makes devices and surgical instruments.  No other big pharma company is present in this segment and it is growing fast.  Novartis also entered the vaccines business in a big way a few years back with the purchase of Chiron.  They have a biotech arm as well as various OTC brands and nutrition related products.  The only issue is that their biggest drug - Gleevec is coming off patent soon but I think their pipeline is pretty robust.  It pays dividends only once a year though.
     
    2. Nestle (OTCPK:NSRGY) - 3%.  This one is listed on the Pink Sheets OTC exchange that typically gives the impression of smallish off beat companies.  However, this isn't the case with Nestle which is one of the largest foods company in the world.  Their global reach is unsurpassed and their products have instant brand recognition around the world.  Extremely well managed and still growing in spite of its huge size.
     
    3. ACE Ltd (NYSE:ACE) - 2%.  The yield is low on this insurance giant but I have been looking to buy some financial companies outside the US while nobody wants to invest them after the economic crisis of 2008-09.
     
    4. STMicroelectronics (NYSE:STM) - 6%.  It is a huge semiconductor company that has various engineering facilities all over Europe though the headquarters are in Geneva.  They have a huge product portfolio though they haven't been able to produce substantial growth in profits over the last few years due to serious competition from Broadcom, Qualcomm, Texas Instruments and other Chinese/Taiwanese players.  The dividend hasn't really grown over the last 5 years but it appears that the management is more committed to dividends now with decent hikes in last couple of years.
     
    Disclosure: I am long NVS, STM and have limit buy order pending for NSRGY
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