I've told you before
about the opportunities in international companies...
Dozens of countries are growing their economies at faster rates
than the United States. The CIA World Factbook ranks the United
States near the bottom in world gross domestic product growth --
number 172 of 214 countries/territories. That's not all.
Many of these countries are more fiscally disciplined. Out of 210
nations and territories that report data, the United States' annual
of nearly 9% ranks near the worst, at number 192.
Meanwhile, I've told you time and again about many of the income
opportunities abroad. At last count, 1,716 profitable foreign
companies paid yields of more than 6%... compared to just 131
(For more on the high-yield opportunities found in foreign markets,
visit this link
It should be little surprise, then, that the best-performing income
stock so far this year is a foreign company paying a
of more than 7% (and you can buy the stock right here on the
This company is small. Its
is only about $400 million and it trades fewer than 200,000
a day... about what
Apple (Nasdaq: AAPL)
trades in four minutes.
Despite its small size and being relatively unknown,
Tsakos Energy Navigation (
has seen its stock rise 73% this year alone...
Tsakos is one of the largest tanker-leasing companies in the world.
In total, it owns nearly 50 vessels that ship crude around the
globe. So what's driving the stock's rise?
Like most tanker companies, Tsakos had a tough year in 2011 due to
near record-low oil tanker shipping rates. Oil tankers have faced
oversupply for the past several years as operators ordered a large
number of new ships when rates were high from 2003 to 2008.
As a result, the global fleet expanded at a rapid pace, capping the
rates that operators could charge to lease their ships.
More recently, tanker company stocks have rallied on news that
rates for tankers and dry bulk carriers are on the rise.
One reason is a surge in demand for oil from China, prompting
exporters in the Persian Gulf to book more tankers. In addition,
sanctions on Iranian oil exports have prompted many insurers to
refuse coverage of any tanker loading cargo in Iran. To offset the
loss of supply, Saudi Arabia has stepped up its own exports.
Recently, Saudi Aramco (Saudi Arabia's national oil company) hired
a total of nine "very large crude carrier" (VLCC) tankers to ship
additional oil, its largest tanker booking in years. That helped to
tighten the supply and demand for tankers and push up rates.
While the tanker
still looks oversupplied with ships over the next two to three
years, there's growing optimism that rates have bottomed... and
stocks like Tsakos Energy Navigation are soaring because of it.
Risks to Consider:
Now, I'm not recommending the shares. They are particularly
volatile, and while they pay a 7%-plus yield, I wouldn't be
surprised to see a pullback given the recent run.
Action to Take -->
However, I do think the recent performance of TNP illustrates just
how important the international markets are to income investors.
There are simply too many opportunities available to not look
I don't think you should drop everything and put every dollar you
have into international high yielders. But as I like to say,
limiting yourself to only the U.S. is like going to a restaurant
and limiting your options to just one side of the menu. Sure you
can find something you like... but wouldn't you rather see all the
For more on international dividend-payers, I invite you to
watch my latest presentation
, where I've also included names and ticker symbols of many
high-yield international plays.
Visit this link
to learn about these stocks now.]
-- Paul Tracy
Paul Tracy owns shares of TNP.StreetAuthority LLC does not hold
positions in any securities mentioned in this article.
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