The post-election stock market upsurge here in the U.S., as well as the focus on the Italian referendum and other problems in Europe, may mean that we are overlooking some attractive dividend opportunities abroad.
Most investors around the world fall into the pattern of concentrating on their own country’s equities, which is easy to do here because our domestic market is so enormous. But the best investors seek out the best the world has to offer, and in 2014 and 2015, more than two-thirds of the world’s dividends came from non-U.S. companies.
Higher Yields
In fact, Fidelity studied the performance of foreign stocks from 2002 through 2011 and found that the stocks typically yielded 4% to 5%, as compared to U.S. stocks, which paid out about 2%.