Dividends: A World of Smart Yield Plays

As U.S. investors increasingly look overseas, S&P's latest screen finds 20 attractive foreign companies with market-beating yields

by Beth Piskora From Standard & Poor's Equity Research

In the ongoing search for income investments, many U.S. investors are seeking yield instruments overseas. That's because foreign companies are increasingly initiating or boosting dividend payments.

As of Feb. 13, the dividend yield on the S&P Euro 350 index was 3.2%, vs. a 2.1% yield for the S&P 500. And it's not just Europe. Stocks in Asia and emerging markets are also increasingly paying dividends.

What are some attractive U.S. names investors should know about? S&P Equity Research screened for foreign companies within S&P Equity Research's coverage universe that trade as American Depositary Receipts or American Depositary Shares on a U.S. exchange. The shares had to have a dividend yield higher than that of the S&P 500-stock index.

To ensure their appeal, we made them pass though one final filter. The shares had to carry an S&P investment rank of 4 STARS (buy) or 5 STARS (strong buy), meaning S&P analysts expect them to outperform the S&P 500 on a total return basis over the coming 12 months, with the shares rising in price on an absolute basis.

Twenty names made the cut. Please see the associated slide show for more details on the companies on the list.

Piskora is managing editor of U.S. Editorial Operations for Standard & Poor's .