Illustration by The National
Illustration by The National

10 income-paying global stocks to boost your portfolio



You can build a comfortable retirement on stocks and shares, if you are willing to take a little risk and put in a bit of effort.

While investing in individual company stocks is too complicated for many people, it can be highly rewarding for those who take the trouble.

Stocks offer an unparalleled combination of capital growth from rising share prices, and income from company dividends.

Globally, companies paid out dividends worth an astonishing US$447.5 billion in the second quarter, a record high, according to the latest Janus Henderson Global Dividend Index. Janus Henderson reckons global dividends will hit $1.2 trillion across 2017, a rise of 5.5 per cent on last year.

You can share in this regular cash windfall by investing in top income-paying stocks from around the world.

While you are still working you should re-invest that income back into your portfolio to generate further growth. However, after you retire you can start drawing those dividends as income to top up your pensions and other retirement earnings.

Building a portfolio of equity income stocks is therefore worth considering at any stage in your life, but you really feel the benefit in retirement.

The following 10 global companies could help form the building blocks of a balanced portfolio, but remember, investing in individual companies is always risky, no matter how safe and secure they may appear to be. This isn't for everybody, but it could just work for you.

Royal Dutch Shell

Yield: 6.13 per cent

Clem Chambers, founder of global investment website Advfn.com, picks out London-listed global energy giant Royal Dutch Shell as one of his favourite income stocks. This Anglo-Dutch oil and gas behemoth, which has a market capitalisation of $115bn, has a proud record of never once cutting its dividend since the Second World War.

Shell has maintained this record throughout the recent oil price collapse, by cutting costs and disposing of non-core parts of its business operations.

Currently, the stock yields a generous 6.13 per cent, far more than you will get on any savings account. However, you must understand the risks as well as the rewards.

Mr Chambers says he takes advantage of Shell's share price volatility. "Typically, I buy its stock whenever its share price has fallen appreciably, reinvest the dividends and wait for the recovery. The income is almost unbeatable."

EDF Energy

Yield: 8.21 per cent

Mr Chambers also tips French-owned energy giant Électricité de France, better known as EDF Energy, which generates and trades energy, operates transmission grids, and is a specialist in nuclear power.

EDF, listed on the Paris stock exchange, has a market cap of $35 billion and annual revenues of $83 billion. It currently yields a whopping 8.21 per cent.

Investors are usually wary of companies with such heady dividends. The yield is calculated by dividing the dividend per share by the current share price, which means that if the stock falls the yield automatically rises. A sky-high yield is often a sign of a company in trouble.

However, Mr Chambers says EDF, which has 37 million customers worldwide, is in recovery mode after recent troubles, with its share price up 15 per cent over the past year. “I believe it will benefit from the global shift towards electric cars, as this will require an estimated 50 per cent surge in electricity production, massively boosting demand and revenues."

Taiwan Semiconductor Manufacturing Company

Yield: 3.12 per cent

Russ Mould, investment director at online platform AJ Bell, picks out the Taiwan Semiconductor Manufacturing Company as one of his favourite income stocks. “It is a world-leading contract maker of silicon chips and is well positioned to ride the current technology wave,” he says.

The stock has been growing strongly, rising 25 per cent in the past 12 months, and offers a steady yield of 3.12 per cent.

Mr Mould says the company's earnings can be cyclical but the long-term trend is upwards. “The dividend is well covered by earnings, and the company offers the prospect both of rising profits and growing dividends in the future.”

Firms that generate enough profits to increase their dividend year after year are particularly attractive as they allow you to buy into a rising income.

Although TSMC is based in Taiwan, Mr Mould says it is possible to invest in the company on the New York Stock Exchange by purchasing its American Depository Receipts (ADRs), which allow investors to buy stakes in foreign listed companies.

Wells Fargo

Yield: 2.8 per cent

US bank Wells Fargo has endured a tough year after it was revealed that employees had created millions of false bank accounts in order to hit their sales targets.

However, Mr Mould says the bank, which has a market cap of $275bn, is fighting back strongly with its share price up 26 per cent in the past year. "Despite the recent scandal Wells Fargo has a terrific franchise in the world’s largest economy. The bank is building a good dividend growth profile and comes with a yield of 2.8 per cent a year,” he says.

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Legal & General Group

Yield: 5.47 per cent

Laith Khalaf, senior analyst at UK wealth advisers Hargreaves Lansdown, picks out London-listed insurer Legal & General Group as his preferred income play.

L&G, which has a market cap of $20 billion, has benefited from being a pioneer in passive tracker funds, which are proving increasingly popular among investors. It operates in the UK, US, the Gulf, Europe and Asia, and its asset management arm is the 10th largest in the world.

L&G’s share price has doubled over the past five years, and is up 20 per cent in the past 12 months, Mr Khalaf says. “It has recovered from the initial Brexit shock and currently offers a generous yield of 5.47 per cent. The company should also benefit from rising interest rates.”

BHP Billiton

Yield: 4.78 per cent

Global mining giant BHP Billiton may be listed in London but it is a truly international operation with copper, zinc, iron ore, coal and potash projects across the Americas, mining and mineral assets in Australia, and oil production across the US, Australia and Trinidad and Tobago.

The $36bn company’s massive diversification has helped it recover from the commodity stock sell-off in 2014 and 2015.

BHP Billiton paid off $10bn of debt last year, and plans to pay out a minimum 50 per cent of earnings in dividends in the future. Currently, it yields 4.78 per cent. “No miner is without risk, but BHP Billiton’s high quality assets make it one of the best placed miners to weather the commodity cycle,” Mr Khalaf says.

Exxon Mobil

Yield: 3.77 per cent

Lee Wild, head of equity strategy at stocks and shares website Interactive Investor, names $345 billion oil giant Exxon Mobil as one of his top income stocks. “Oil companies have been through the wringer since the collapse in crude prices three years ago but, like Shell, Exxon Mobil is passionate about its dividend. It has increased annual dividends for 35 consecutive years and grown the payout by 10 per cent on average over the past five years.”

Exxon is highly disciplined with a strong balance sheet and cash flow, and is able to fund its dividend even if oil fell to $40 a barrel. “It currently yields 3.77 per cent and is well placed to keep increasing returns to shareholders,” says Mr Wild.

Dominion Energy

Yield: 3.93 per cent

Mr Wild also tips Dominion Energy, the US-based electric transmission and distribution operator. The firm has also been generous to its shareholders, increasing its dividend for 14 consecutive years. “This $50 billion company currently yields 3.93 per cent and recently announced plans to ramp up its annual dividend growth from 8 to 10 per cent until at least 2020.”

Dominion is on a strong financial footing and as well as the dividend, its share price is up nearly 12 per cent over the past year.

HSBC Holdings

Yield: 5.25 per cent

The big banks are still in recovery mode a decade after the financial crisis, but some are performing better than others.

HSBC Holdings is a truly global bank, with exposure to fast-growing China. The London-listed bank, which has a market cap of $197bn, has seen its share price grow 30 per cent over the past 12 months. It still yields a generous 5.25 per cent.

HSBC’s latest interim results showed reported profit before tax of $10.2 billion in 2017, up 5 per cent year-on-year.

Ian Forrest, investment research analyst at online stockbroker Share.com, says: “The bank’s management is confident with revenue growth, stronger trading conditions, lower loan impairments and rising US interest rates all helping performance.”

The Hunger Games: The Ballad of Songbirds & Snakes

Director: Francis Lawrence

Stars: Rachel Zegler, Peter Dinklage, Viola Davis, Tom Blyth

Rating: 3/5

65

Directors: Scott Beck, Bryan Woods

Stars: Adam Driver, Ariana Greenblatt, Chloe Coleman

Rating: 2/5

COMPANY PROFILE

Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside

VEZEETA PROFILE

Date started: 2012

Founder: Amir Barsoum

Based: Dubai, UAE

Sector: HealthTech / MedTech

Size: 300 employees

Funding: $22.6 million (as of September 2018)

Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC

The bio:

Favourite holiday destination: I really enjoyed Sri Lanka and Vietnam but my dream destination is the Maldives.

Favourite food: My mum’s Chinese cooking.

Favourite film: Robocop, followed by The Terminator.

Hobbies: Off-roading, scuba diving, playing squash and going to the gym.

 

Company Profile

Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed

Tips on buying property during a pandemic

Islay Robinson, group chief executive of mortgage broker Enness Global, offers his advice on buying property in today's market.

While many have been quick to call a market collapse, this simply isn’t what we’re seeing on the ground. Many pockets of the global property market, including London and the UAE, continue to be compelling locations to invest in real estate.

While an air of uncertainty remains, the outlook is far better than anyone could have predicted. However, it is still important to consider the wider threat posed by Covid-19 when buying bricks and mortar. 

Anything with outside space, gardens and private entrances is a must and these property features will see your investment keep its value should the pandemic drag on. In contrast, flats and particularly high-rise developments are falling in popularity and investors should avoid them at all costs.

Attractive investment property can be hard to find amid strong demand and heightened buyer activity. When you do find one, be prepared to move hard and fast to secure it. If you have your finances in order, this shouldn’t be an issue.

Lenders continue to lend and rates remain at an all-time low, so utilise this. There is no point in tying up cash when you can keep this liquidity to maximise other opportunities. 

Keep your head and, as always when investing, take the long-term view. External factors such as coronavirus or Brexit will present challenges in the short-term, but the long-term outlook remains strong. 

Finally, keep an eye on your currency. Whenever currency fluctuations favour foreign buyers, you can bet that demand will increase, as they act to secure what is essentially a discounted property.

The specs

Engine: 2.0-litre 4-cyl turbo

Power: 247hp at 6,500rpm

Torque: 370Nm from 1,500-3,500rpm

Transmission: 10-speed auto

Fuel consumption: 7.8L/100km

Price: from Dh94,900

On sale: now

Ramez Gab Min El Akher

Creator: Ramez Galal

Starring: Ramez Galal

Streaming on: MBC Shahid

Rating: 2.5/5

Key products and UAE prices

iPhone XS
With a 5.8-inch screen, it will be an advance version of the iPhone X. It will be dual sim and comes with better battery life, a faster processor and better camera. A new gold colour will be available.
Price: Dh4,229

iPhone XS Max
It is expected to be a grander version of the iPhone X with a 6.5-inch screen; an inch bigger than the screen of the iPhone 8 Plus.
Price: Dh4,649

iPhone XR
A low-cost version of the iPhone X with a 6.1-inch screen, it is expected to attract mass attention. According to industry experts, it is likely to have aluminium edges instead of stainless steel.
Price: Dh3,179

Apple Watch Series 4
More comprehensive health device with edge-to-edge displays that are more than 30 per cent bigger than displays on current models.

A QUIET PLACE

Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou

Director: Michael Sarnoski

Rating: 4/5

The specs

Engine: 2.0-litre four-cylinder turbo

Power: 178hp at 5,500rpm

Torque: 280Nm at 1,350-4,200rpm

Transmission: seven-speed dual-clutch auto

Price: from Dh209,000 

On sale: now

MATCH INFO

FA Cup fifth round

Chelsea v Manchester United, Monday, 11.30pm (UAE), BeIN Sports

SPEC SHEET

Processor: Apple M2, 8-core CPU, up to 10-core CPU, 16-core Neural Engine

Display: 13.6-inch Liquid Retina, 2560 x 1664, 224ppi, 500 nits, True Tone, wide colour

Memory: 8/16/24GB

Storage: 256/512GB / 1/2TB

I/O: Thunderbolt 3 (2), 3.5mm audio, Touch ID

Connectivity: Wi-Fi 6, Bluetooth 5.0

Battery: 52.6Wh lithium-polymer, up to 18 hours, MagSafe charging

Camera: 1080p FaceTime HD

Video: Support for Apple ProRes, HDR with Dolby Vision, HDR10

Audio: 4-speaker system, wide stereo, support for Dolby Atmos, Spatial Audio and dynamic head tracking (with AirPods)

Colours: Silver, space grey, starlight, midnight

In the box: MacBook Air, 30W or 35W dual-port power adapter, USB-C-to-MagSafe cable

Price: From Dh4,999

Women’s T20 World Cup Qualifier

UAE results
Ireland beat UAE by six wickets
Zimbabwe beat UAE by eight wickets
UAE beat Netherlands by 10 wickets

Fixtures
UAE v Vanuatu, Thursday, 3pm, Zayed Cricket Stadium
Ireland v Netherlands, 7.30pm, Zayed Cricket Stadium

Group B table
1) Ireland 3 3 0 6 +2.407
2. Netherlands 3 2 1 4 +1.117
3) UAE 3 1 2 2 0.000
4) Zimbabwe 4 1 3 2 -0.844
5) Vanuatu 3 1 2 2 -2.180

Crops that could be introduced to the UAE

1: Quinoa 

2. Bathua 

3. Amaranth 

4. Pearl and finger millet 

5. Sorghum

Ticket prices

General admission Dh295 (under-three free)

Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free

Buy tickets at: wbworldabudhabi.com/en/tickets

How does ToTok work?

The calling app is available to download on Google Play and Apple App Store

To successfully install ToTok, users are asked to enter their phone number and then create a nickname.

The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.

Users can also invite other contacts to download ToTok to allow them to make contact through the app.

 

UNSC Elections 2022-23

Seats open:

  • Two for Africa Group
  • One for Asia-Pacific Group (traditionally Arab state or Tunisia)
  • One for Latin America and Caribbean Group
  • One for Eastern Europe Group

Countries so far running: 

  • UAE
  • Albania 
  • Brazil 
England Test squad

Joe Root (captain), Moeen Ali, James Anderson, Jonny Bairstow (wicketkeeper), Stuart Broad, Jos Buttler, Alastair Cook, Sam Curran, Keaton Jennings, Dawid Malan, Jamie Porter, Adil Rashid, Ben Stokes.

The specs

Price: From Dh529,000

Engine: 5-litre V8

Transmission: Eight-speed auto

Power: 520hp

Torque: 625Nm

Fuel economy, combined: 12.8L/100km

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Company profile

Name: Tharb

Started: December 2016

Founder: Eisa Alsubousi

Based: Abu Dhabi

Sector: Luxury leather goods

Initial investment: Dh150,000 from personal savings

 

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures


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