Market Overview

3 Foreign Stocks Yielding More Than 5%


Everyone wants growth and emerging markets in their portfolios, as emerging market economies have been growing faster than the U.S. economy for years.

Everyone also wants some yield on their investments, gaining a little more bang for their bucks.

Here are three foregin stocks that are yielding more than 5%

Banco Santander, S.A. (NYSE: STD) yields 5.6%, and has a market cap of $103.5 billion, indicating the foreign bank isn't likely to fail any time soon. Santander has been on an acquisition spree lately, ranging from its purchase of Sovereign bank in the U.S. a couple of years ago, to buying a 24.9% stake in Grupo Financiero Santander(Mexico), and buying Allied Irish Banks's (NYSE: AIB) 70% stake in Bank Zachodni WBK. These acquisitions should help expand Santander's presence in strong emerging markets, and fuel growth.

BT Group plc (NYSE: BT) yields 6.4%, and has a market cap of $17.5 billion. The company operates as a communications services company in the UK, offering fixed lines, broadband, mobile, and television (TV) products and services, as well as networked IT services. It is a strong value at these prices, trading under 11 times earnings, has a P/S ratio of 0.54, not to mention its strong 6% yield. Shares have been in a firm uptrend since September, indicating money has been moving sharply into the stock.

The last stock is Companhia Energetica Minas Gerais (NYSE: CIG), which yields 5.1%, and has an $11.4 billion market cap. This is a play on the growing Brazilian economy, and should see strong demand for its electricity, as Brazil continues to grow. It will only get stronger in the years to come, as Brazil hosts the 2014 World Cup and 2016 Olympics.

These are a few stocks that yield over 5%, have strong fundamentals, and are emerging market plays. Everything a strong, well diversified portfolio should have.

Posted-In: Long Ideas Trading Ideas


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