Saturday, December 13, 2014

Undervalued International Dividend Stocks $PBR $PBR.A $RIO $ITUB $BACHY

In this post I would like to highlight the best international stocks that I see for dividend investing and potential capital gains in what I see is an inevitable rebound of these top names.  The also are leaders in their industries but are suffering from macroeconomic and stock market pressure right now.

Petrobras, ticker symbol PBR and PBR.A is suffering from internal pressures right now, to go with additional pressures from falling oil prices.  The fact remains that despite this, the company is making a lot of money and paid its preferred shareholders a .77 per ADR dividend this year.  That makes it current yield close to 10% and I believe this stock is very undervalued and will perform well in the long-term.

Itau, ticker symbol ITUB, is growing its dividend as well and is another top name in Brazil.  I see its growing earnings and also think that it will continue to raise its dividend.  I view this as a strong play to profit from an uptick in the Brazilian economy, which will happen sooner or later.

Rio Tinto, ticker symbol RIO, pays a healthy dividend and has grown earnings this year.  It is a leader in the iron ore business but has suffered from falling commodity prices.  This has lead them to up production and take market share from smaller players.  This will help long-term, and there is a possibility for a special dividend in February of 2015 to sweeten the pot for waiting.

Bank of China, $BACHY, has performed well this year and also has a growing dividend.  It has grown earnings this year as well, so I expect another dividend increase next year.

Please note, I have long positions in all of these stocks.

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