Banco Bilbao Vizcaya Argentaria (BBVA)
Dividend Yield: 7.4%
1-Year Total Return: 47%
Banco Bilbao Vizcaya Argentaria (BBVA) is a Spanish banking giant generating outsized total returns after a long period of being kicked to the curb by the market. BBVA can mostly give thanks to a healthier Europe, but there’s more to it than that.
Like competitor Banco Santander (SAN), BBVA gets the vast majority of its profits overseas, notably in Latin America. In BBVA’s case, it has a leading footprint in Mexico, where gross domestic product is expected to accelerate from as much as 4% this year to 4.2% in 2015. BBVA also has extensive operations in the hot economies of Chile, Colombia and Peru.
The market also likes the fact that BBVA is rapidly growing the profits it derives from operations in the U.S. and Asia, which will further shelter it from any more tremors in Europe. Always its strong suit, BBVA’s geographical sprawl bodes well for long-term outperformance.