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3 International Dividend Stocks You Must Own

Don't fear international equities. Embrace them -- especially the ones paying out hefty dividends.

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Vodafone

Vodafone185 3 International Dividend Stocks You Must OwnDividend Yield: 4.3%

Vodafone (VOD) is the U.K. equivalent of AT&T (T), and is a Nasdaq-100 stock.

The company’s annual report provides concise highlights of where the business is and where it’s going. Group revenue fell 4.2% while data revenue increased 7.5%. Adjusted operating profit was up 3.7% to 12 billion euros and free cash flow was 5.6 billion euros. Adjusted EPS were up 5%.

The sale of its Verizon Wireless stake back to Verizon (VZ) for $130 billion, of which $58.9 billion is in cash, merely provides Vodafone with even more cash on its balance sheet to pay its dividend — not that it needed it. Dividends have long been manageable under free cash flow, and cash on hand — which was $86 billion in March — is far above that now.

I compare the company to AT&T because Vodafone’s 400 million worldwide customers create the aforementioned massive free cash flow for the company, which is paid out to investors in the form of a 4.3% yield. This is a dividend stock worth owning.


Article printed from InvestorPlace Media, http://investorplace.com/2013/11/3-international-dividend-stocks-san-vod-hbc/.

©2014 InvestorPlace Media, LLC

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