 |
| Dow | Nasdaq | About Us | Disclaimer |  |
RSS Feed |  |
Follow us on Twitter |
|
Featured Advisors |
Tuesday August 03, 2010
Foreign favorites: Fresenius and Novo Nordisk
by Chuck Carlson, editor The DRIP Investor  Smart investors don’t limit their opportunity set when hunting for attractive stocks. That’s one reason smart investors don’t limit portfolios to just U.S. stocks. It’s estimated that more than two out of every three dollars invested in stocks globally is invested in companies outside the U.S. And a large number of those companies offer appeal for dividend investors. Diversification is the reason most often provided for investing overseas. But I think a stronger argument is simply to expand your opportunity set — your fi shing pond — for looking for potential winners. The good news is that it has never been easier to invest overseas. Mutual funds have been the investment of choice for investors wanting to invest abroad. However, the growth of American Depositary Receipts (ADRs) has made it easier for U.S. investors to own individual foreign stocks. 
DRIP investors will be happy to know that a growing number of ADRs allow any U.S. investor to buy stock directly, without a broker. I tend to preference companies with strong market positions and decent track records of earnings and dividend growth. Among stocks in developed countries, I particularly like two health care stocks -- Fresenius Medcical (FMS) and Novo Nordisk (NVO). Fresenius Medical, based in Germany, is the world’s largest integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition the company estimates affects nearly two million individuals worldwide. Through its network of 2,580 dialysis clinics in North America, Europe, Latin America, Asia-Pacific, and Africa, Fresenius Medical Care provides dialysis treatment to nearly 200,000 patients. The stock has held up well during the market’s recent bout of volatility. A strong move through the $57 level would be especially bullish. Novo Nordisk, based in Denmark, has been a frequent visitor to DRIP Investor over the years, for good reason. The company may be my single favorite foreign stock. Novo Nordisk is the world’s largest diabetes-care company. According to the World Health Organization, the number of diabetics is expected to exceed 350 million worldwide by 2030. The company’s biopharmaceuticals division involves hemophilia treatment, growth hormone therapy, and hormone replacement therapy. Profits should remain on the fast track, and long-term prospects are attractive. Novo Nordisk stock has performed quite well and may be a bit pricey in the near term. However, investors would be wise to use pullbacks into the $70s to take positions. Learn more about this financial newsletter at Chuck Carlson's The DRIP Investor. |
News Flash
|
|