Is International Investing Still Worth It?
What do well-known brands such as Ketel One vodka, Haagen-Dazs ice cream, and Shell gasoline have in common? They are all brands owned by foreign corporations. Furthermore, the owners of these popular brands pay dividend yields on their stock of 2.3%, 3.5% and 4.6% respectively, with two of them growing dividends year over year by 10% and 15% in 2011 despite the entire Euro crisis. When carefully researched, the risk in owning international stocks is not necessarily at the business level. Rather, it lies at the asset allocation level due to the fact that global economies are now so inextricably linked due to globalization and technology, that as an asset class, international stocks may not provide the same diversification benefits in the future that they have in the past.
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