The Procter & Gamble Company (PG), Philip Morris International Inc. (PM): The Easy Path to Dividend-Rich Global Giants

Page 1 of 2

Exchange-traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to add some global giants stocks to your portfolio, the iShares S&P Global 100 Index ETF could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously.

The basics
ETFs often sport lower expense ratios than their mutual fund cousins. The iShares ETF’s expense ratio — its annual fee — is a relatively low 0.40%. It recently yielded 2.7%.

This ETF has performed rather well, beating the world market over the past five and 10 years. As with most investments, of course, we can’t expect outstanding performances in every quarter or year. Investors with conviction need to wait for their holdings to deliver.

With a low turnover rate of 4%, this fund isn’t frantically and frequently rejiggering its holdings, as many funds do.

The Procter & Gamble Company (NYSE:PG)Why global giants?
Large companies can add some ballast to your collection. Many may not grow as briskly as their smaller counterparts, but in order to reach their current size, they likely have some strong assets and features. And some can also grow quite briskly, often while paying sizable dividends (that also grow over time).

More than a handful of global giants had strong performances over the past year. The Procter & Gamble Company (NYSE:PG), for example, surged 19%, and yields 2.9%. Many love it for its immense brand power and its plans to cut costs by $10 billion are impressive as well. Still, the company is growing slowly, and it does carry a lot of debt. My colleague Rich Smith doesn’t like its stock buyback plans, either.

Philip Morris International Inc. (NYSE:PM) gained 17% as it profits from a growing global middle class that’s more able to spend money on cigarettes. It sports an attractive 3.6% dividend yield, and has also been spending massive sums on stock buybacks — tens of billions of dollars. The company has smart management, but it’s also likely facing increased regulations and taxes on tobacco.

Other companies didn’t do as well last year, but could see their fortunes change in the coming years. U.K.-based telecom giant Vodafone Group Plc (ADR) (NASDAQ:VOD) shed 3% and recently yielded 4.1%. It has bulls excited about its Smart II low-cost, mass-market smartphone, and its entry into the promising mobile payments market. It also recently signed a deal to provide mobile service in 30 nations. The company is huge, with more than 400 million customers, and its 45% interest in Verizon Wireless is a big plus, generating billions in cash (though there’s talk that Verizon might buy that back).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!