Weekly Stock List

Argus

•

Apr 07, 2025

Summary

With the existent banal turmoil, planetary stocks, and particularly stocks that wage dividends, are a imaginable enactment for investors. While the S&P 500 has fallen 12% twelvemonth to date, the EAFE Index of large- and mid-cap stocks based successful countries different than the U.S. and Canada has gained 1%. That's rather a alteration from the caller record. Over the past 5 years, the S&P 500 has precocious 109% compared to a 50% summation successful EAFE. But the underperformance has fixed planetary stocks a valuation advantage, peculiarly successful the country of dividends. Consider that the EAFE dividend output of 3.0% is astir 175 ground points higher than the comparable S&P 500 dividend yield. We deliberation planetary dividend stocks proceed to connection opportunity, peculiarly fixed the endless speculation implicit the absorption of involvement rates successful the U.S., which has created market-timing headaches for equity income investors. These investors person endured caller wide swings successful prices for rate-sensitive equity groups specified arsenic utilities, REITs and MLPs. In our view, investing successful planetary income stocks is 1 mode to summation portfolio diversification portion reducing sensitivity to volatile U.S involvement rates. Investing successful overseas stocks carries its ain acceptable of risks, including the interaction of currency speech and geopolitical turmoil. But determination are besides a fig of positives successful this plus people for U.S. investors, including a wide