Royal Dutch Shell plc (ADR) (RDS.B), Lorillard Inc. (LO): An International Big Yielding Portfolio

Communications

This Russia-based communications company probably doesn’t show up on many investors’ radars. The company actually owns the third-largest wireless network in Russia and is the second largest land-line operator in the nation, too.

While providing these services, the company also manages to pay out an impressive dividend that yields 8.50%.

What really appealed to me about this company the most was some of their expected growth. Analysts believe that the company will grow earnings by around 18% this year, and a further 33% next year. That’s vastly outperforming what analysts believe the S&P 500 will do.

Another thing that’s great is that this company is trading at just 8.4 times earnings while the S&P as a whole is soaring much higher. The company also comes at quite a low price-to-book value of just 1.23. With the growth that’s supposed to be coming, you’ll be able to bridge that gap in no time.

When it comes down to it, we’re buying this stock simply for the yield. There is no doubt that communications in Russia will grow over the next couple of years, but gains in the stock may end up following the overall market much like Verizon does.

Investor takeaway

All three of these companies operate in different segments, and in different countries. They also pay outstanding dividends that should be able to bolster anyone’s cash balance.

I would consider buying all three of these companies, they could even be considered a nice starter portfolio for anyone who is wanting to get going with a dividend portfolio.

The article An International Big Yielding Portfolio originally appeared on Fool.com and is written by Ash Anderson.

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