# recommendations for good US/Intl dividend stock in healthcare or telecommunications?



## joncnca (Jul 12, 2009)

rounding out the asset allocation, seem to be light in these areas. suggestion for basic materials is also welcome, but not as light in this. any thoughts?

thanks!


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## Cal (Jun 17, 2009)

You should research ABT, JNJ, CL, FMS, NVS, NVO, SNY, AZN for healthcare.

I am sure many will tell you to look into AT&T, but you may want to look into CM or stay close to home, BCE and RCI.B have great monoploies on the telecommunications sector here.


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## PMREdmonton (Apr 6, 2009)

Healthcare US:

ABT
JNJ
COV
MDT
Stryker

International healthcare:

SNY
NVS
GSK
Teva

I would avoid LLY, AZN, BMY and MRK as they may be value traps due to pipeline issues and patent cliffs.


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## PMREdmonton (Apr 6, 2009)

US telecommunications:

VZ
T

International telecommunications (except for Vodafone and TEO you will be charged a dividend withholding tax. I think it is 26% France, 10% China, 19% Spain, 10% Japan, 20% Indonesia)

TLK (indonesia)
TEO (argentina)
TEF (Spain)
VOD (Britain)
FTE (France)
DCM (Japan)
NTT (Japan)
CHL (China)


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## humble_pie (Jun 7, 2009)

edmonton those are excellent lists.

would you happen to know whether novartis adr triggers a swiss withholding tax whether held in reg'd or non-reg'd ...


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## PMREdmonton (Apr 6, 2009)

humble_pie said:


> edmonton those are excellent lists.
> 
> would you happen to know whether novartis adr triggers a swiss withholding tax whether held in reg'd or non-reg'd ...


I think it is 35% withholding tax from the Swiss no matter where it is held - so better to hold in non-registered so you can claim the credit for the taxes that are charged.


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## gimme_divies (Feb 12, 2011)

A really nice long-term buy in Healthcare is BDX. I also really like MDT a lot. Both of these have very low payout ratios and rock solid history of dividend increases. 

In telecommunications, France Telecom is a nice option with a huge dividend. I don't think you can go wrong with T both in Canada and the US.


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## liquidfinance (Jan 28, 2011)

Vodafone.

Struggling to get above £1.80 and currently down to £1.70 Nice yield and could be considered global exposure to the market. 

A nice stock to own but I would never consider having a phone from them. They are always too expensive in the UK market. 

For UK exposure it would be British Telecom (bt) although half the yield of Vodafone. Even with the deregulation of the market all the companies still have to pay BT for access of the networks so its really always a win win for them.


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## m3s (Apr 3, 2010)

liquidfinance said:


> Vodafone.
> 
> Struggling to get above £1.80 and currently down to £1.70 Nice yield and could be considered global exposure to the market.
> 
> A nice stock to own but I would never consider having a phone from them. They are always too expensive in the UK market.


I have a phone with Vodafone and it's great compared to what I'm used to. Works in many many countries and the coverage is far superior to the discount option I tried (apparently in Europe discount brands are not just ghost brands of the real ones)



> Vodafone is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers (behind China Mobile), with over 391 million subscribers as of September 2011. Vodafone owns and operates networks in over 30 countries and has partner networks in over 40 additional countries. It owns 45% of Verizon Wireless, the largest mobile telecommunications company in the United States measured by subscribers


*Owns VOD, TEF, CHL. TEF is on fire sale recently but due diligence required. Also own JNJ, ABT and NVS


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## gibor365 (Apr 1, 2011)

Healthcare:
definetely ABT and JNJ , also KMB even though it's not real healthcare but washroom equipments 100% KMB 
As an nice hedge to Healthcare , every dividend investor should have PM and/or MO... 

Telecoms, T and VZ .... (for me personally T is enough together with ours BCE and RCI.B)...
Foreign telecoms I'd buy only if they increase dividend for at least 10 years.

Edmonton, you didn't mention NZT Telecom Corp Of New Zealand.... many like it.

Long ABT, KMB, JNJ, PM, MO, T


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## liquidfinance (Jan 28, 2011)

mode3sour said:


> I have a phone with Vodafone and it's great compared to what I'm used to. Works in many many countries and the coverage is far superior to the discount option I tried (apparently in Europe discount brands are not just ghost brands of the real ones)
> 
> 
> 
> *Owns VOD, TEF, CHL. TEF is on fire sale recently but due diligence required. Also own JNJ, ABT and NVS


My own phone is with Telefonica (O2 UK) Always had a great service and are not the cheapest but also offr good home phone a broad band packages. 

I like the company but have been cautious about picking their stock up so far.


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## Financial Cents (Jul 22, 2010)

Healthcare:

ABT, JNJ, MDT, BDX, NVS. I would avoid LLY, AZN and MRK.

Telcos:

T, VZ, TEF, VOD. 

I would only buy a U.S./Int'l stock that has a long history of paying dividends. Otherwise, buy an ETF.


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## joncnca (Jul 12, 2009)

PMREdmonton said:


> I think it is 35% withholding tax from the Swiss no matter where it is held - so better to hold in non-registered so you can claim the credit for the taxes that are charged.


PMREdmonton, could you explain what you mean by claim the credit for taxes? how does this work, or could you direct me to something that could explain this further?

also, does anyone think VZ is expensive, with a P/E of 43?


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## PMREdmonton (Apr 6, 2009)

When you buy say NVS through an ADR the US company will note there is a 35% withholding tax and the Swiss will keep this and send the other 65% to the bank who holds the ADR and then they'll send the 65% to you (let's say we're talking $1.00 in dividends to make it easier). 

Now if you keep it in your RRSP you have 65 cents deposited and it will be taxed as income when you pull it out. If you will have very little money in retirement maybe you'll pull out those 65 cents tax-free but it you have done well in your investments you may be taxed at a rate of say 30%. Then they'll take 30% of that 65 cents or about 19.5 cents so you'll end up with 45.5 cents.

IF you hold it in your TFSA you'll end up with 65 dividend cents entered and then pay no taxes.

Now let's say you have it in a registered account and let's say your marginal rate is 39%. The government will see that you already paid 35% tax to the foreign government (you have to fill out a form for this) and they'll then charge you only 4 more cents. 

The TFSA looks like a good place to have kept it but compare that to a US company where you'd have only paid 15 cents or how about a UK company where you'd have paid 0% if bought through an American ADR. 


My recommendation is that if you do have a non-registered account, this is a good place to put a Swiss dividend paying company. If you don't have a non-registered account I'd keep it in my TFSA since I prefer to keep the RRSP for American dividend payers.


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## fullyinformed.com (May 2, 2012)

*Johnson and Johnson Stock would be my choice*

I don't think you can go wrong with Johnson and Johnson stock. It would be my choice. I have held JNJ Stock for a great many years. The company is reasonably conservative yet aggressive enough to keep expanding. It has been in a range for a long time which made buying and selling the stock or selling naked puts a great way to earn decent returns without much work. It pays a decent dividend which it has increased annually for more than 50 years. While it may seem boring to a lot of investors, often for dividend portfolios, boring is good. Just my two cents on health care stocks. Teddi Knight


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