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Top 5 Foreign Banks Yields
| Written by Tyler
Are you looking for some solid companies with great growth potential and healthy
dividends to add to your stock portfolio? Why not have a look at some of the larger
?foreign banks to fill this need
It is no secret that banks are a great source of dividends, especially for those of you
investing for income in your retirement plans (IRA, 401K etc.). However, in recent
.years the valuations of the domestic banks have been increasing
I have found, as have many professional investors, that the value available in foreign
.banks is much more attractive, at this time, than with domestic banks
While the domestic banks offer great stability and a healthy yield, some foreign banks
.are offering very generous yields but also have a much greater potential for growth
The following is a list of the top 5 foreign banks sorted by dividend yield. This will
give you a great place to go hunting for solid dividend paying stocks to add to your
.portfolio
STD (Banco Santander Central Hispano SA (ADR 6.05
BCS (Barclays PLC (ADR 5.55
WBK (Westpac Banking Corporation (ADR 4.19
AIB (Allied Irish Banks, plc. (ADR 4.07
ANZ (Australia and New Zealand Banking (ADR 4.04
Be sure to use criteria other than just yield in your due diligence process. If you are
looking for a place to start, begin by reading How to Choose Dividend Growth Stocks
.and Dividend Investing Basics
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 Maldives Island Beach
Last week was one of the worst weeks for many of the world’s stock market indices.
The UK’s FTSE 100 was down a massive 26% from the previous week. France’s
CAC and Germany’s DAX also plunged over 20% for the week. The Nikkei Index of
.Japan lost 24%
Here in the US, the Dow plummeted 18% for the week, the worst in its history.The
S&P 500 Index also declined 18% for the week.Financial stocks were some of the
worst performers last week. In the US, the S&P Financials Index is down a
.horrendous 49.70% year-to-date
Given the above events, I wanted to check which foreign bank stocks were the best
and worst performing year-to-date. Back in September, I wrote an article titled “By
How Much Have Foreign Bank Stocks Fallen?” which showed how much foreign
bank stocks had fallen after the recent high reached in October,2007. At that time,
HBOS plc (HBOOY) of UK was the loser with a -71.76% return and the two stocks
that were down less than 10% were First Bancorp (FBP) of Puerto Rico and Hang
.Seng Bank (HSNGY) of Hong Kong
Now lets take a look at the five best and worst performing banks year-to-date.This list
.does not take into account dividends paid during this time period
:(The Five Best Foreign Bank Stocks(as of Oct 10,2008
Year-
.S.No Bank Ticker to-Date
Change
-
1 HSBC Plc HBC
18.18%
Mitsubishi
-
2 UFJ MTU
28.72%
Financial
Mizuho -
3 MFG
Financial 36.23%
Banco -
4 BMA
Macro 38.72%
5 Santander STD -
Central 39.51%
 Year-
.S.No Bank Ticker to-Date
Change
Hispano
:(The Five Worst Foreign Bank Stocks (as of Oct 10,2008
Year-
.S.No Bank Ticker to-Date
Change
Royal
-
1 Bank of RBS
83.39%
Scotland
ICICI -
2 IBN
Bank 77.48%
Bank of -
3 IRE
Ireland 76.97%
Allied
-
4 Irish AIB
75.14%
Banks
Llyods -
5 LYG
TSB 66.80%
The data in the above list was developed based on the NYSE traded stocks only.If
OTC stocks were included, HBOOY is the worst stock since it is down 87.3% so far
this year.But it should be noted that HBOOY is being acquired by Llyods Bank
.(LYG). So HBOOY will trade after the merger is over
:Analysis
It is interesting to see HBC of UK being the best stock in the above list.HBC might .1
.be the best British bank to add to one’s portfolio at these levels
Japanese banks are holding up well compared to their European and American .2
.peers
RBS is the worst performer in the list. Last week alone the stock collapsed a .3
.whopping 61% in London trading
ICICI Bank (IBN), the largest private sector bank in India is fighting to restore .4
investor confidence there. Last week it fell 20% in trading in India. To allay depositor
fears, the bank sent text messages to customers’ cellphones today saying “the bank is
well capitalised with good liquidity. Please do not listen to baseless rumours”. So it is
.not surpisring to see IBN ADR down nearly 78%
Disclosure: Long LYG, RBS, BMA