Dividend yield is referred to the financial ratio measuring quantum of cash dividends which are paid out to shareholders in comparison to its market value per share. Dividend yield is calculated by dividing dividend per share by market price per share and multiplying final figure by 100. More often than not, it is assumed that the company having high dividend yield pays a significant amount of its profits in form of dividends. However, there can be times where the dividend yield is higher only because the stock price has declined significantly. Therefore, before investing in Global stocks with high dividend yield, it is of utmost importance to carefully check the reason for the same. If the reason is the decline in share price, investors are advised to check reason for such a decline and then invest accordingly.
Dividend yield of a particular company is always compared with average of industry to which that particular company belongs. There is a general belief that global stocks with high dividend yieldare mature companies and they pay on a regular basis. More often than not, global stocks with high dividend yield belong to utility and consumer staple industries. It’s important for investors to know that increased dividend yields do not always hint that a particular stock is attractive. Therefore, a lot of research is required before investing in any particular stock. In general, dividend yields are affected by several factors such as stock prices, industry trends, company growth, its fundamental position, etc. Dividend yield plays a critical role in evaluating stock’s return on investment. However, it shouldn’t be the only factor to consider at the time of choosing investments.
Let us now quickly have a look at global stocks with high dividend yield.
1. American Tower Corporation
The company owns and operates over ~220,000 cell towers across US, Asia, Latin America, Europe, and Middle East. It owns and/or operates ~25 data centers in 8 US markets post the acquisition of CoreSite. The company had released financial results for quarter ended June 30, 2023 and its total revenue grew by ~3.6% to $2,772 million, while its property revenue was up by ~4.4% to $2,729 million. Adjusted EBITDA of the company saw an increase of 4.7% to $1,749 million and its net income fell 48.2% to $462 million.
Momentum from start of the year was carried on to 2Q, as the company’s customers invest in their networks to address higher demand. American Tower saw consolidated organic tenant billings growth exceeding 6% for 2nd consecutive quarter, solid leasing in US Data Center segment, and exhibited focus on cost controls. All these factors supported the company in achieving growth and attractive margin expansion.
Apart from this, the company delivered another quarter of ~10% dividend per share growth, and it made strong progress in strengthening investment grade balance sheet. Therefore, the company raised its full-year outlook for property revenue, adjusted EBITDA and attributable AFFO. For FY23, the company expects total property revenue in the range of $10,790 million – $10,970 million and adjusted EBITDA is expected to be between $6,950 million- $7,030 million. AFFO attributable to AMT common stockholders is expected to be in the range of $4,490 million- $4,570 million.
As of June 30, 2023, the company had ~$8.2 billion of total liquidity, which consisted of ~$2.0 billion in cash and cash equivalents plus ability to borrow aggregate of ~$6.2 billion as per its revolving credit facilities, net of outstanding letters of credit.
2. Brookfield Renewable Corporation
The company has been categorised as a globally diversified multi-technology owner and operator of clean energy assets. Portfolio of the company includes hydroelectric, wind, solar, and storage facilities in North America, South America, Europe, and Asia.
It has released results for 3 months ended June 30, 2023 and its revenues totalled ~$901 million, which represents decrease of $96 million in comparison to the same period in the prior year. This was seen because growth of its business and increased realized pricing was more than offset by unfavorable generation.
Recently acquired and commissioned facilities made the contribution of 557 GWh of generation and $22 million to revenues. This was offset by recently completed asset sales which decreased generation by 315 GWh and revenues by $23 million.
Strengthening of the US dollar relative to similar period of prior year throughout most currencies lowered its revenues by $36 million. However, this was partly offset by $24 million favorable FX impact on the company’s operating and interest expenses for the quarter.
3. Kenvue Inc.
The company is an American consumer health company. It has announced its separation from Johnson & Johnson, and it now a fully independent company.
In fiscal 2Q ended July 2, 2023, it net sales growth of 5.4% to $4.0 billion, with organic growth of 7.7%. Its 2Q results exhibited strength of its portfolio of iconic brands, the agility of operating model and strong execution, while navigating dynamic environment.
Higher net sales and organic growth were mainly supported by value realization, higher demand throughout its pain care and cough, cold and flu product categories due to higher cold and flu incidences, and sequential share gains in sun care supported by innovation and improved supply.
The company anticipates fiscal 2023 reported net sales growth of between 4.5% – 5.5% and fiscal 2023 organic growth of 5.5% to 6.5%, which exhibits benefit of unique items impacting 1H of fiscal 2023, including one-time restocking benefit realized in 1Q23 and increased cold and flu incidence rates that benefited self-care portfolio through 1H23.
The company expects fiscal 2023 adjusted earnings per share of between $1.26 – $1.31.
Conclusion
While are some of the screened global stocks with high dividend yield, there are several other stocks from different industries which have high dividend yields. Before investing, first-time investors are advised that they should not look at the dividend yield in isolation. Several other factors (such as market position, valuation multiple, revenue growth, profit growth, etc.) are required to be thoroughly studied.
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