Buy these 4 international stocks for $1,500 in dividends on a $5,200 investment

24/7 Wall Street Insights

• American Depositary Receipts (ADRs) are official US certificates representing shares in foreign companies that can trade as US shares on US exchanges.
• While they may not be consistent in their total dividend amounts on an annual basis, many of them currently have extremely high yields as of this writing.
• Dividend ADR fees are currently 5 cents per share.
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International stocks can often have potential growth opportunities that have no connection or connection to U.S. events. Some large foreign companies are majority-owned by sovereign nations, which have commensurate advantages along with national influence behind them. As a result, some of these companies are currently offering ultra-high double-digit yields based on market prices at the time of writing.

ADR

Instead of trying to navigate time zone and currency differences to access foreign exchanges, American Depositary Receipts. Bearing official U.S. certificates representing foreign stocks for trading on U.S. exchanges, they can be obtained just like U.S. stocks on the NYSE, NASDAQ, or OTC markets.

24/7 Wall Street has a colossal database of dividend stocks that have present numerous examples of different portfolios to suit a wide range of investor criteria. With the very affordable dividend ADR surcharge of 5 cents per share, the following ADRs listed below can provide $1,500 in passive income dividends on a total investment of $5,200, equivalent to a cumulative average 29% APR.

Avance Gas Holding Ltd.

Stock: Avance Gas Holding Ltd. (OTC: AVACF)

Yield: 53.36%

Shares for $1,300: 131.8

Annual Amount of Dividends: $693.68

Avoiding the oil side of the energy business, Avance Gas Holding, Ltd., based in Hamilton, Bermuda, engages exclusively in liquefied petroleum gas (LPG). Avance Gas transports LPG from the Persian Gulf and the US Gulf/US East Coast to destinations in Europe, South America, India and Asia.

In August, the company announced a sale of its fleet of 12 Very Large Gas Carrier (VLGC) vessels for USD 1.05 billion to BW LPG. Following the closing of this transaction, which will be completed in December, Avance Gas will be the owner of four medium-sized gas carriers (MGCs) capable of carrying full cargoes of ammonia, a 12.77% stake in BW LPG, as well as a substantial cash. holding.

Including an earlier sale of 4 other vessels, Avance Gas will have sold a total of 16 VLGC vessels for a net profit of $435, which represents the large dividend payments. By chartering other vessels for transportation operations, the company is most likely to take advantage of other opportunities while continuing to serve the distribution requirements of the LPG industry.

The trades and delivery of the vessels to BW LPG are scheduled to take place in the 15 September to 31 December 2024 window, allowing Avance Gas to trade the vessels for an additional period in the winter market. After repaying the bank financing, the company’s net earnings are estimated at $335 million

Previous Q1 2024 VLGC sales to other parties included Avance Castor and Avance Pollux, both newbuilds, netted Avance Gas nearly $100 million after repayment of bank financing.

Ecopetrol, SA

Stock: Ecopetrol, SA (NYSE: EC)

Yield: 32.17%

Shares for $1,300: 148

Annual Amount of Dividends: $418.21

Ecopetrol is located in Bogotá and has operations in Colombia, USA, Asia, Europe, South America, Central America and the Caribbean. As Colombia’s national oil company, it engages in oil and gas exploration. In addition, Ecopetrol transports, refines and sells crude oil, refined fuels, petrochemical distillates, polypropylene resins and compounds and natural gas. The company is also involved in power transmission and information technology.

Ecopetrol continues to expand its business and develop its reserves. Beginning in late February 2024, the company announced the discovery of two new separate deepwater natural gas fields.

As Ecopetrol is 85% owned by the Colombian government, it is subject to more political policies than private entities. Under former President Ivan Duque, Ecopetrol moved to the Permian Basin to gain fracking experience. In 2019, the company established a joint venture in the Midland Basin with Occidental Petroleum.

Colombia’s energy resources and energy security issues are now subject to the administration of President Gustavo Petro and his priority to favor green energies. He is adamantly against fracking and even importing US gas from the drilling process, despite Colombia’s vast shale oil resources. As a result, Ecopetrol was forced to abandon a $3.6 billion deal with Occidental for a stake in the latter’s CrownRock LP.

However, Ecopetrol has increased its dividend every year since 2020, with a total increase of +38.8%.

TORM plc

Stock: TORM plc (NYSE: TRMD)

Yield: 17.35%

Shares for $1,300: 37.7

Annual Amount of Dividends: $225.55

Another example of energy specialization in the shipping industry is the 135-year-old UK shipping company TORM plc. Headquartered in London and founded in 1889, TOMR transports refined petroleum products such as petrol, fuels and naphtha, as well as fuel oil.

TORM plc’s 90 vessel strong fleet mainly ranges between 45,000 and 114,000 DWT (Deadweight Tonnes), which places them in the LR1 (Long Range 1: 55,000-79,999 DWT) and LR2 (Long Range 2: 090- 915, DWT).

Analysts also believe TORM plc is undervalued. The company’s current assets are about 3.5 times its current liabilities, which indicates strong liquidity, ability to meet short-term obligations and pay a consistent dividend of 17.35%. TORM plc is trading at 4.95 times this year’s earnings estimate, a 57% discount to the energy transportation industry and significantly lower than its sector rivals.

Petróleo Brasileiro SA – Petrobras

Stock: Petróleo Brasileiro SA – Petrobras (NYSE: PBR)

Yield: 12.74%

Shares for $1,300: 87.6

Annual Amount of Dividends: $165.62

Growing international support for the BRICS (Brazil, Russia, India, China, South Africa) and its emphasis on a sound, asset-backed currency is resonating with the more than 40 countries that have applied for membership.

Based in Rio de Janeiro, Brazil, Petróleo Brasileiro SA – better known as Petrobras, is the national oil company of Brazil. As such, its energy commodities are of national importance to Brazil real.

The company has three broad divisions:

• Oil and natural gas exploration and production.
• Refining, Transportation and Marketing, which handles the sales of crude oil and refined products such as ethanol.
• Gas and Power, which involves the logistics and trading of liquefied natural gas (LNG) together with thermoelectric power generation.

An announcement earlier this year that Petrobras was considering buying back the Mataripe refinery in northern Brazil from Acelen subsidiary of Abu Dhabi-owned Mubadala Capital gave investors reason to cheer as it reinforced the bullish outlook of many analysts. Other major growth-oriented transaction announcements include:

• A potential acquisition of a 40% stake in Namibia’s Mopane oil and gas exploration block from Portugal’s Galp Energia, SGPS, SA
• A recent $1 billion drilling contract struck deals with Constellation Oil in September.
• Two offshore subsea contracts awarded to UK-based TechnipFMC.
• The completion of a $1 billion bond offering that was 3.2 times oversubscribed, indicating market support and confidence in new CEO Magda Chambriard, who replaced Jean Paul Rates in June after the latter was fired by President Lula da Silva.

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