Vodafone Group Plc (ADR) (VOD), France Telecom SA (ADR) (FTE): International Telecoms Are a Haven For Yield

As has happened with most international stocks, PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) has suffered recently due to the strengthening U.S. dollar. The stock is down nearly 20% in just a few weeks, but for new investors, this may present an intriguing opportunity.

According to Yahoo Finance, PT Telekomunikasi Indonesia (ADR) (NYSE:TLK)’s annual dividend yields 4.5% at recent prices, and the company’s payout was 12% higher than the previous year.

The Foolish bottom line

Spreading your bets to stocks that operate outside the U.S. is a great way to diversify your equity investments. Even though it’s true that globalization has made the world a much more interconnected place, there remains a degree of separation that still insulates one region of the globe from another.

In addition, even though these companies are trying to turn around their businesses and suffer from stagnating revenues, each of them remains committed to paying dividends to shareholders. Their depressed stock prices mean that their outsized yields compare very favorably to their American peers. Investors interested in geographical diversification who are not averse to the heightened level of risk associated with international economies may consider these stocks as suitable alternatives to the U.S.-based telecom stocks.

The article International Telecoms Are a Haven For Yield originally appeared on Fool.com.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends France Telecom (ADR), Telkom Indonesia, and Vodafone. The Motley Fool owns shares of France Telecom (ADR). Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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