If you're a frequent StreetAuthority.com reader, then you know
in the past few weeks I've told you a lot about the benefits of
owning international high-yield stocks... even during a rough time
Don't get me wrong. I'm not suggesting you should drop everything
and put every dollar you have into international high-yielders like
the 9.4% dividend-payer I'm going to tell you about in a moment.
Truth is, the size and scope of the U.S. market makes it a great
place to search for income investments.
But at this point, the size and number of the yields abroad is
frankly too large to ignore.
As I've shown you in recent issues, 96% of the world's highest
yields aren't being paid by U.S. companies. More than 400
profitable companies based outside the United States pay
yields of 12% or more -- versus only about 18 companies here at
The difference is striking. As of the start of August, the average
for all stocks in the S&P 500 was just 2.0%, Germany's average
yield was 3.6%... Brazil's average yield was 4.1%... the United
Kingdom yielded 3.4%... Australia yielded 4.5%... New Zealand paid
Let me give you an example...
In the past few years, dozens of high-yielding funds that focus on
international dividend payers have come to market.
These funds scour the globe in search of the highest yields. Then
they combine them all into a nice neat package for U.S. investors.
That makes it incredibly easy to access high-yielding international
securities. You can buy
of these funds directly on the New York Stock Exchange, just like
shares of any other stock.
AllianceBernstein Global High Income Fund (NYSE:
, for instance. I own shares of this in my portfolio for my
advisory. It invests in hundreds of
around the world.
Many of these securities are difficult -- if not impossible -- for
average investors to buy. But AWF gives you an opportunity to buy a
basket of them without leaving the United States.
The fund owns government bonds from Brazil that pay 12.5% annually.
It owns bonds from Russia's Gazprom -- the world's largest
natural-gas explorer -- that pay 9.25%.
But not all of its holdings are from abroad. It also balances out
that exposure with bonds from U.S. companies -- like Caesars
Entertainment notes paying 11.25%.
But focusing heavily on overseas bonds -- where yields are higher
-- allows AWF to throw off a spectacular stream of income.
This diversified fund pays $0.10 per share every month, giving it a
yield of 9.4% at recent prices. And in the past five years, the
fund has returned an annualized gain of 11.4%.
Like many securities around the world, AWF has sold off with the
broader market. I think this makes a pretty compelling entry point
for more aggressive investors. Many of its holdings are low-grade
bonds, which yield higher, but see more volatility than traditional
Action to Take -->
As time goes on, I think investors will continue to expand their
horizons to international high-yielders, thanks to strong yields
available from securities like AWF and the sheer number of
high-yielders that trade abroad.
If you'd like to learn more, I have more details -- including
several names and ticker symbols -- in a presentation on the high
yields available abroad.
Visit this link to watch now
. In the presentation, I've even included more about the 412 stocks
I've found abroad paying yields of more than 12%.
Visit this link to watch
-- Paul Tracy
Disclosure: Neither Paul Tracy nor StreetAuthority, LLC hold
positions in any securities mentioned in this article.
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