I think it's one of the
's biggest missed opportunities. Every day, millions of U.S.
investors are missing out on the world's highest-yielding
That's because the vast majority of the world's highest-yields
aren't found in the United States.
As the chief strategist behind
, I've spent the past five years scouring the globe for the world's
highest yielding stocks, funds and exchange-traded funds (ETFs).
And at last count, my research shows that more than 90% of the
world's highest-yielding stocks are based in international markets.
(You can read more of my research about these stocks
That includes companies like global shipping giant
Navios Maritime Partners (
, which yields 13%. And Bermuda-based outfits like
, which pays an impressive 7%.
If you're like most people, then you'll probably never take
advantage of foreign stocks like these.
That's a shame, because the average stock in Germany yields 3.6%...
is 3.6%... the United Kingdom yields the same... and New Zealand
By contrast, stocks here at home yield a paltry 2.1%, on average.
Most U.S. investors dismiss the idea of investing abroad. They tend
to think other countries are "riskier" than the United States.
But that's not the case... especially with one special country I'll
tell you about in a moment, where average yields are double those
found in the United States.
A safer way to invest in today's highest-yielding
In the past couple of years, the United States' total
has topped $15 trillion -- and that burden is projected to grow
even larger... reaching a total of $22 trillion by 2020.
Like a taxi meter spinning faster and faster, we are slipping $4.2
billion deeper into the hole every day -- at a rate of $175 million
was even knocked down from its golden "AAA" status by Standard
Now compare that to a country like Australia...
From the mid 1990s through 2007, the Australian government steadily
paid down its debts, reducing the nation's debt-to-GDP (growth
domestic product) ratio to less than 10%.
Although Australia took steps to help stimulate its
amid the financial crisis, the government kept spending under
control. As a result, Australia's debt-to-GDP ratio stood at just
under 23% as of the end of last year. Even better, the
International Monetary Fund projects that Australia's government
debt-to-GDP will be back under 15% by the end of 2017.
But what's more, amid all the pain caused by the GreatRecession ,
Australia has truly lived up to its nickname the "Lucky Country"...
entirely and emerging from the global downturn largely unscathed.
Throughout the entire economic slowdown, Australia's
only experienced a single quarter of negative economic growth, and
that was at the height of the financial crisis in 2009. The
country's growth quickly reaccelerated to a 3% clip in 2010.
That's part of the reason Australia is one of only eight countries
that still sports a perfect "AAA" credit rating by all the major
Yields that are two times higher than U.S. stocks
But Australia is much more than just a safe place for your money.
The country also offers some of the highest yields on the planet.
of all stocks on the Australian Stock Exchange stands at just under
5%, more than double the 2.1% average yield offered by stocks in
the S&P 500.
, Australia's equivalent to
. The telecom offers phone and Internet service around the country.
You'd expect a telecom to pay a substantial
. AT&T pays a yield of about 5%, making it one of the S&P's
But Telstra pays a yield of nearly 7.5%.
It's the same story with
APA Group (
. This company is the largest natural gas infrastructure firm in
Australia, owning more than 10,000 kilometers of natural gas
pipelines, two major natural gas storage facilities and two power
If that business sounds familiar, it's basically the same as a
master limited partnership (MLP)
here in the United States. MLPs are known for their high-yields.
The largest U.S.-based MLP,
Enterprise Products Partners (EPD)
, yields just under 5%.
APA Group? It pays nearly 7%, working in basically the same
But Australia is by no means the only country that offers fat
dividend yields like these...
The fact of the matter is there is simply a much stronger dividend
culture abroad. Individual investors play a larger role in those
markets, and they have always demanded more dividends.
Risks to Consider:
Don't get me wrong, I don't think you should drop everything
and put every dollar you have into international high-yielders. The
sheer size and scope of the U.S. market still makes it a great
place to search for income investments.
Action to Take -- >
But limiting yourself to only U.S. stocks 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 options?
For more on international dividend-payers, I invite you to read 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 does not personally hold positions in any securities
mentioned in this article. StreetAuthority LLC owns shares of SDRL,
T, EPD, NMM in one or more if its "real money" portfolios.
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