European Vs. American Dividends: 6 Things To Consider

Dividend investors often ask whether their portfolio should include any European stocks as European and American companies have differing practices on dividend issuance. The difference usually stems from the fact that American and European investors have different mindsets. When it comes to dividends, American investors prefer stable, solid and predictable dividends, whereas European investors would not mind taking risks with their dividends because they are not as focused on capital growth as much as Americans are. Let's compare dividend practices of some American and European companies. First we will look at the Dutch electronics company Philips (PHG). Last year the company issued dividends of 95 cents per share, yielding 3% based on the share price on the day of issuance. The same dividend would today yield about 5.1% due to stock price changing value. In 2010, the company issued 79 cents per share and in 2009 the company issued 80... Read more