Whether you're worried about the U.S. economy or just want to diversify your portfolio, it can be a good idea to consider investing in companies based in other parts of the world. And some of those stocks also offer some great yields. Three foreign dividend stocks that pay more than 5% that you should consider for your portfolio are Orange (NYSE: ORAN), Enbridge (NYSE: ENB), and Ambev S.A. (NYSE: ABEV). Here's a look at how much each of these stocks yields, and why they are attractive investment options.
Orange: 6.5%
Orange is a French-based telecom provider and a big brand in Europe, Africa, and the Middle East. The company has nearly 300 million customers worldwide, and operates in 26 countries.
Last year Orange reported revenue of 44.1 million euros, which rose around 2% on a year-over-year basis. Operating income improved by nearly 7% on a comparable basis, with management saying that it had met all of its financial targets for the year. Orange has streamlined its portfolio and consolidated some operations in an effort to strengthen its bottom line, which has clearly paid off for the business.
The company pays a dividend in euros, so investors are likely to see some volatility in their payouts. But with a dividend yield of 6.5%, you're still going to be getting some good bang for your buck, as that's well above the S&P 500 average of 1.4%. At less than 10 times expected future earnings, this is also a fairly cheap stock to buy.
Enbridge: 7.8%
Canadian pipeline company Enbridge helps connect the oil and gas industry with its infrastructure. It claims to operate "the world's longest and most complex crude oil and liquids transportation system," connecting producers in Canada and the U.S. Through its Mainline and Express networks, the company transports over 3 million barrels per day of crude oil and liquids.
Enbridge gives investors some good stability, as its business relies on long-term contracts. The company is coming off a strong year in 2023, with the business saying it hit its financial guidance for an 18th straight year. Adjusted earnings of 5.7 billion Canadian dollars were unchanged from a year ago, and distributable cash flow, which the company relies on to assess its dividend payments, improved by CA$0.3 billion to CA$11.3 billion for the full year.
A decline in oil prices has made investors bearish on oil and gas stocks, but Enbridge is one of the safer ones to invest in. And with a dividend yield of 7.8%, investors can collect a lot of recurring income from this stock.
Ambev: 5.9%
The last dividend stock on this list comes from South America, with Brazilian-based Ambev providing investors with yet another solid dividend investment to consider for their portfolios. The beverage company is in 18 countries, including Argentina, Paraguay, Uruguay, and many countries in the Caribbean. Anheuser Busch-InBev holds a 62% stake in the business, and North American customers will be familiar with many of Ambev's brands, including Corona, Stella Artois, and Budweiser. Ambev also has a relationship with PepsiCo to bottle, sell, and distribute its products in many Latin American countries, including Brazil.
Through the first nine months of 2023, Ambev's net revenue totaled just under 60 billion Brazilian reais ($12 billion), which rose 5% year over year. Ambev's profit also rose by 6.4% It has been a consistently strong performance for the business, as Ambev has reported 13 straight quarters of double-digit organic revenue growth.
The beer business is generally a resilient one to invest in and usually sees strong demand in both good times and in bad. For investors, Ambev can make for a good stock to buy that helps minimize risk while also providing a good payout. Today Ambev stock yields 5.9%.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Enbridge. The Motley Fool has a disclosure policy.
