Paul Sutherland, who has been managing investments in the US and abroad for more than 20 years, scours the globe to find bargain-priced stocks that pay substantial dividends for his Utopia Core Conservative Fund. The fund also currently has more than one-half of its assets in international and US bonds and money-market investments to moderate risk. Among equity investments, Sutherland finds Taiwanese stocks especially attractive now because they are far cheaper than the generally hot Chinese stocks, which he believes are dangerously overpriced. The average dividend yield of a Taiwanese stock today is 4% versus 0.8% for Chinese stocks and 2% for Hong Kong equities.
Here are some of Sutherland’s top picks around the world:
Chunghwa Telecom Co. Ltd. (CHT). This Taiwanese telecommunications company, which is traded on the New York Stock Exchange, will benefit from its close proximity to mainland China. The company is generating a good cash flow and is well positioned in a country with heavy demand for high speed communications. No matter which cost measure is used, Chunghwa is cheaper than Chinese telecoms. Even better, the yield on Chunghwa’s dividends is currently 5%. Recent share price: $18.29.
Oesterreichische Post AG (OERCF.PK). Austrian Post, which is this company’s Anglicized name, is the privatized postal service in Austria. The company distributes mail through 1,300 post offices and also provides parcel and logistic services similar to what FedEx and UPS offer in the US. What’s more, Austrian Post, whose cash dividend yield is nearly 6%, is expanding in Eastern Europe. Recent share price: $37.60.
Babcock & Brown Wind Partners (BBWPF). This Australian company leases 68 wind farms to utilities and other corporations in six countries. Wind energy doesn’t contribute to global warming and, because of technology gains, it has become cost competitive to traditional sources of energy. The company’s current dividend yield is about 7% and Sutherland expects that to rise. Recent share price: $1.45.
