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Wanted to share the international high yield ADR portfolio I came up with tonight. The rules were:

1.High yield.
2.Each ADR must be in a different industry.
3.Each ADR must be from a different country.

Here's the best I could do:

CHT Taiwan Telcom 6.08%
PKX Korea Steel 5.32%
NAB Australia Banking 5.59%
PTR China Oil 5.05%
LR France Building Products 5.23%
LYG UK Insurance 6.85%
DLT Israel Apparel 4.35%

The overall yield is 5.5%. Will this basket outperform a 1.5% yielding S&P 500? Dunno, but it might be worth risking 5% of your portfolio on. If you could invest directly in these markets, you could do a lot better...ADRs are limiting.

Will revisit this post in a year and see how things turn out.

Nick
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How are they limiting?

LD
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For example I can buy Posco Steel (ticker PKX, div yield 5.3%), since it has an ADR, but not China Steel (ticker 2002.TW, div yield 11%) because it doesn't.

Nick
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How about comparing it to the 5-10 highest yielding stocks from the S&P 500? Currently you would be in the 4.5-5.0% range with that basket of stocks. Might be a little more apples to apples comparison since you're picking a subset of international stocks from a larger group.

JLC
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How about comparing it to the 5-10 highest yielding stocks from the S&P 500?

Good point. Asia ex Japan stocks are supposedly cheaper by most metrics than US stocks now, but it would be interesting to prove that.

Here's some info on the relative cheapness (especially given its financials) of one of them:

http://www.fool.com/News/mft/2004/mft04101314.htm?logvisit=y&source=eptyholnk403200

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i went over to the reuters power screener and asked for all ADRs with 3 year dividend growth greater than 1%, then sorted on dividend yield (ignoring those with yield under 3%). here's the list, if folks want more ideas to look at. interestingly, only NAB & LYG made into this list, perhaps because of the >1% 3 yr div growth step?

--morgan
Ticker	3yrdivG	DivYld	Name
 VNT   83.50   16.74   C.A. Nac. Telefonos de Venezuela (ADR) 
 CCH   2.58   11.37   Coca-Cola HBC S.A. (ADR) 
 TSP   60.79   9.26   Telecomunicacoes de Sao Paulo SA (ADR) 
 KTC   42.54   6.41   KT Corporation (ADR) 
 YPF   105.19  6.40   YPF Sociedad Anonima S.A. (ADR) 
 NZT   10.52   6.03   Telecom Corp of New Zealand (ADR) 
 PBR   49.05   5.95   Petroleo Brasileiro S.A. (ADR) 
 TNE   10.34   5.87   Tele Norte Leste Participacoes SA (ADR) 
 SKM   116.76  5.85   SK Telecom Co., Ltd. (ADR) 
 SAN   14.58   5.61   Banco Santander-Chile (ADR) 
 NAB   7.13   5.55   National Australia Bank Ltd. (ADR) 
 PKX   16.96   5.36   POSCO (ADR) 
 BSI   16.07   5.07   Blue Square-Israel Ltd. (ADR) 
 MSK   10.28   5.07   Grupo Industrial Maseca SA de CV (ADR) 
 HSVLY   21.64   5.05   Highveld Steel and Vanadium (ADR) 
 PTR   27.05   5.03   PetroChina Company Limited (ADR) 
 ANZ   11.43   5.00   Australia and New Zealand Banking (ADR) 
 ITY   20.19   4.93   Imperial Tobacco Group PLC (ADR) 
 GGB   20.26   4.79   Gerdau S.A. (ADR) 
 UGP   19.53   4.72   Ultrapar Participacoes SA (ADR) 
 TLD   4.55   4.65   TDC A/S (ADR) 
 DELT   7.55   4.57   Delta Galil Industries (ADR) 
 DEO   7.37   4.50   Diageo plc (ADR) 
 ABN   1.82   4.48   ABN AMRO Holding N.V. (ADR) 
 SDA   55.27   4.43   Sadia S.A. (ADR) 
 WBK   11.52   4.41   Westpac Banking Corporation (ADR) 
 AMCR   4.55   4.09   Amcor Limited (ADR) 
 LYG   3.78   4.06   Lloyds TSB Group plc (ADR) 
 ELUX   17.57   3.90   Electrolux AB (ADR) 
 LFL   67.79   3.88   Lan Airlines S.A. (ADR) 
 TKP   8.55   3.88   Technip (ADR) 
 AED   8.61   3.80   Allied Domecq PLC (ADR) 
 STD   3.46   3.76   Banco Santander Central Hispano SA (ADR) 
 E   20.94   3.71   Eni S.p.A. (ADR) 
 BNG   101.42  3.51   Benetton Group S.P.A. (ADR) 
 DYS   7.72   3.44   Distribucion y Servicio D&S S.A. (ADR) 
 RANKY   5.02   3.39   The Rank Group Plc (ADR) 
 SSL   12.04   3.36   Sasol Limited (ADR) 
 TMX   7.55   3.28   Telefonos de Mexico, S.A. (ADR) 
 TLK   45.39   3.24   PT Telekomunikasi Indonesia (ADR) 
 GSK   2.57   3.24   GlaxoSmithKline plc (ADR) 
 IBA   18.83   3.24   Industrias Bachoco SA (ADR) 
 NGG   9.47   3.22   National Grid Transco plc (ADR) 
 ELE   2.70   3.20   Endesa S.A. (ADR) 
 ABV   69.81   3.18   Companhia de Bebidas das Americas (ADR) 
 ARCAF   7.17   3.16   ARCADIS NV (ADR) 
 SZE   2.46   3.16   Suez SA (ADR) 
 BBV   15.07   3.15   BBVA S.A. (ADR) 
 HBC   11.32   3.14   HSBC Holdings plc (ADR) 
 BOX   2.63   3.13   The BOC Group plc (ADR) 
 RD   12.64   3.11   Royal Dutch Petroleum Company (ADR) 
 CIB   96.23   3.10   Bancolombia S.A. (ADR) 
 TSU   22.92   3.07   TIM Participacoes SA (ADR) 
 TNT   3.23   3.05   OAO Tatneft (ADR) 
 SNP   4.00   3.03   China Petroleum & Chemical Corp. (ADR) 
 NEN   25.99   3.01   New England Realty Assoc. (ADR) 
 REXMY   5.02   3.00   Rexam PLC (ADR) 

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whoops, PTR was in that list too.
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Good stuff! I will analyze a little more and get back to you this weekend.

Nick
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