But bigger isn’t always better, and the dividend stock is minimizing its international exposure as it focuses on markets with less risk and high potential. In the past year, the utility has sold off $946 million in assets across nine countries to balance its books and free up funds for anticipated environmental costs.
Should dividend stocks stay domestic?
NextEra Energy, Inc. (NYSE:NEE)’s sucking it up in Spain, TECO Energy, Inc. (NYSE:TE)’s out of international, Duke Energy Corp (NYSE:DUK)’s international earnings are underwhelming, and we’ll find out this week whether The AES Corporation (NYSE:AES) has found its international sweet spot.
For these four dividend stocks, international investments aren’t adding up. But domestic isn’t necessarily good, and international isn’t always bad. More than anything else, it’s important for utilities to focus on strengths, avoid “diworsification,” and stay vigilant on the risk-reward balance.
The article 4 Dividend Stocks Taking International Dives originally appeared on Fool.com and is written by Justin Loiseau.
Motley Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.The Motley Fool has no position in any of the stocks mentioned.
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