Let’s face it: International stocks are scary things.
Few U.S. investors have lived overseas. Problem is, people live differently in other countries, so it’s more difficult to assess how consumer behavior operates in a culture that’s different from our own. That’s why I usually stick to funds that carry international dividend stocks and just let the pros pick for me.
Generally speaking, dividend stocks say something about the underlying company: namely, that it is on firm enough financial footing to give back to shareholders. But that’s all it tells you … and again brings us back to our initial issue.
The key then, to international stocks, is finding areas of the markets that you can find enough information about, and preferably businesses you actually understand. For instance, here are a few international dividend stocks that I’m comfortable with owning: