{"id":24281,"date":"2011-10-05T11:00:37","date_gmt":"2011-10-05T15:00:37","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=24281"},"modified":"2011-10-05T11:00:37","modified_gmt":"2011-10-05T15:00:37","slug":"this-9-4-yielder-pays-monthly-dividends","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/10\/05\/this-9-4-yielder-pays-monthly-dividends\/","title":{"rendered":"This 9.4%-Yielder Pays Monthly Dividends"},"content":{"rendered":"

By DividendOpportunities.com<\/span><\/strong><\/a><\/p>\n

If you’re a frequent Dividend Opportunities<\/em> reader, 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 in the market.<\/span><\/p>\n

Now, 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.<\/p>\n

Truth is, the size and scope of the U.S. market makes it a great place to search for income investments.<\/p>\n

But at this point, the size and number of the yields abroad is frankly too large to ignore.<\/span><\/p>\n

As I’ve shown you in recent issues<\/a><\/strong>, 96% of the world’s highest yields are not<\/span> being paid by American companies. Over 400 profitable companies based outside the U.S. pay dividend yields of 12% or more — versus only about 18 companies here at home.<\/p>\n

The difference is striking. As of the start of August, the average yield 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 4.4%.<\/p>\n

Let me give you an example…<\/p>\n

Over the past few years, dozens<\/span> of high-yielding funds that focus on international dividend payers have come to market.<\/p>\n

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 shares of these funds directly on the New York Stock Exchange, just like shares of any other stock.<\/p>\n

Take the AllianceBernstein Global High Income Fund (NYSE: AWF<\/a>)<\/strong>. I own shares of this in my portfolio for my High-Yield International<\/a><\/span><\/strong><\/em> advisory. It invests in hundreds of bonds around the world.<\/p>\n

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.<\/p>\n

The fund owns government bonds from Brazil that pay 12.5%<\/strong> annually. It owns bonds from Russia’s Gazprom — the world’s largest natural gas explorer — that pay 9.25%<\/strong>.
\n\"\"
\nBut not all of its holdings are from abroad. It also balances out that exposure with bonds from American companies — like Caesars Entertainment notes paying 11.25%<\/strong>.<\/p>\n

But focusing heavily on overseas bonds — where yields are higher — allows AWF to throw off a spectacular stream of income.<\/p>\n

This diversified fund pays $0.10 per share every month<\/span>, giving it a yield of 9.4% at recent prices. And over the last five years the fund has returned an annualized gain of 11.4%.<\/p>\n

Like many securities around the world, AWF has sold off with the broader market. I think that makes a pretty compelling entry point for more aggressive investors. Many of its holdings are low-grade bonds, which yield higher but do see more volatility than traditional bonds.<\/p>\n

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.<\/p>\n

If you’d like to learn more, I have more details — including several names and ticker symbol<\/strong>s — in a presentation on the high yields available abroad. Visit this link to watch now<\/a><\/strong>. In the presentation, I’ve even included more about the 412 stocks<\/strong> I’ve found abroad paying yields of more than 12%. Visit this link to watch<\/a><\/strong>.<\/p>\n

All the best,<\/p>\n

\"\"<\/p>\n

Paul Tracy
\nStreetAuthority Co-founder, Chief Investment Strategist — <\/span> High-Yield International
\n<\/span><\/p>\n\n\n\n
<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Disclosure:<\/strong> <\/span> Paul owns shares of AWF. StreetAuthority owns shares of AWF as part of High-Yield International’s<\/em> model portfolio.\u00a0 <\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

By DividendOpportunities.com If you’re a frequent Dividend Opportunities reader, 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 in the market. Now, don’t get me wrong. I’m not suggesting you should drop everything and put every dollar you have … <\/p>\n

Continue reading “This 9.4%-Yielder Pays Monthly Dividends”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-24281","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/24281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=24281"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/24281\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=24281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=24281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=24281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}