In today’s world of uncertainties and the global economy, it is crucial to diversify one’s investments because otherwise, the risks are rising. One outstanding way to diversify that comes to mind is to invest in international dividend aristocrats. These are companies that steadily grow their dividends. They are solid companies with good solvency and long performances and cover a wide range of industries and geographical areas.

When it comes to international investments, one must mention the Japanese market. As one of the leading economies of the world with many competitive multinational corporations, Japan provides good investment prospects with reasonable risk. Japanese firms have good structure and governance and are well placed, especially in segments like technology, auto and consumer goods. Other geographical areas where international dividend aristocrats thrive include Asia-Pacific, Europe and other developed markets.

Investors should consider buying shares of these international dividend aristocrats now, especially as the valuations of U.S. stocks continue to soar.

Sumitomo Mitsui Financial Group (SMFG)

Sumitomo Mitsui Financial Group (NYSE:SMFG) is a strong investment candidate. It is one of the biggest financial services groups in the Japanese market. SMFG’s concentration on digital transformation and international business development, mainly in Asia, is beneficial for further expansion.

SMFG’s presence is everywhere in Japan, and I believe that’s what helps it achieve long-term competitive durability.

The latest decision of the company to offer a 3-for-1 stock split and share buyback program proves that the company is trying to increase shareholder value. It currently has a total shareholder yield of 2.51%

Regarding the dividend payout policy, the company has a forward-looking dividend payout ratio of 40%. SMFG provides investors with a yield of 2.54% and potential for capital gains. SMFG trades below its book value per share, which is unusual for such a prominent financial institution. This makes it one of those international dividend aristocrats to consider.

Nestle S.A. (NSRGY)

Nestle S.A. (OTCMKTS:NSRGY) is one of the world’s largest food and beverage companies. With strong brands, it has expanded into new and high-growth categories while adjusting to consumers’ shifting trends. 

Even though Q1 2024 was not very promising, management was quite upbeat about the full-year guidance and predicted a strong recovery from Q2 onward. Concentration on research and development and new products and services, especially in fast-developing segments such as pet care, coffee and health and wellness, is another competitive advantage that speaks for the company’s future development. 

The company’s “Billionaire Brands” business is well-placed, with these brands delivering growth twice the group’s Q1 rate. The company’s sustainability and the portfolio’s strategic management also reveal its future planning. 

NSRGY has a solid dividend of around 3.3% and management also has a long track record of delivering returns to shareholders, which is a major reason I consider it one of those international dividend aristocrats.

Unilever (UL)

Unilever (NYSE:UL) is one of the world’s largest producers of consumer goods and offers a wide range of products in the fields of beauty, personal care, home care, nutrition and ice cream. Given the company’s efforts to execute its Growth Action Plan to achieve better-quality growth and improved returns, Unilever is a good investment idea.

Unilever’s international operations and wide range of products help the company overcome challenges, while sustainability and innovation are the key factors that determine further development. Based on management estimates, there should be a modest improvement in underlying operating margin in 2024 and a solid balance sheet, backing shareholder returns in the form of buybacks and dividends.

UL stock pays a solid dividend of 3.13% and offers a total shareholder yield of 3.44%. Although UL’s dividend has shown some volatility over the years, it is trending strongly upwards, making it one of those international dividend aristocrats to consider.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.