Yesterdays Questor column (05/10/20011) highlighted the attraction of Global companies with higher yields. Now, questor does not have our level of knowledge when it comes to dividends, but it is worth pointing out what the column highlighted.The first point for us to make is that all of the companies mentioned in the artcle are in our investment tools at www.dividendmax.com
The companies highlighted included
1) Vodafone rated 'buy'. It mentions that it is a global business and highly cash generative. It mentions that it's U.S. investment, Verizon is expected to pay a dividend next year of approximately £2.9billion to vodafone and that Vodafone has committed to a special dividend of 4p if that does indeed happen. Apparently, the special dividend will be paid in February. Vodafone has also committed to paying dividend increases of at least 7% for the next two years.
2) HSBC rated 'hold'. It mentions that the yield is 5.7%, but rates it only as hold due to the current financial turmoil
3) B.P. also rated 'hold'. It mentions that the yield is 5%, but that analyts at JP Morgan have calculated a break up value of around 800p for the group, which is more than double it's current value. Rated a hold because of it recent turbulent past.
4) Royal Dutch Shell 'B' Rated a buy. It mentions the yield of 5.8% and advises UK investors to buy the B shares as the A shares have a dutch source for tax purposes. also talks of a turnaround at the group and it's credible plans.
5) Glaxosmithkline Rated a buy. Glaxo, as we have stated many times has a fine dividend record and it is reducing it's reliance on 'white pills in western markets' It's strategy is to move into more consumer orientated products in emerging markets.
6) British American Tobacco Rated a hold due to it's relatively high PE ratio. The shares yield 4.7% and the recent figures were good
