With the current stock turmoil, global stocks, and especially stocks that pay dividends, are a potential option for investors. While the S&P 500 has fallen 12% year to date, the EAFE Index of large- and mid-cap stocks based in countries other than the U.S. and Canada has gained 1%. That's quite a change from the recent record. Over the past five years, the S&P 500 has advanced 109% compared to a 50% gain in EAFE. But the underperformance has given global stocks a valuation advantage, particularly in the area of dividends. Consider that the EAFE dividend yield of 3.0% is roughly 175 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks continue to offer opportunity, particularly given the endless speculation over the direction of interest rates in the U.S., which has created market-timing headaches for equity income investors. These investors have endured recent wide swings in prices for rate-sensitive equity groups such as utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection of companies that pay dividends, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus has recently boosted its global coverage, and recommends the following international dividend stocks, each of which has at least a long-term BUY rating from an Argus analyst. This list of approximately 25-30 companies offers exposure to eight of the 11 major industrial sectors, and includes companies from 10 countries.

London-based British American Tobacco plc is the holding company for a group of companies that manufacture, market, and sell cigarettes and other tobacco products, as well as smokeless products. Its major brands include Newport, Dunhill, Kent, Lucky Strike, Pall Mall, Vuse, glo, Velo, Grizzly, Rothmans, Camel, Natural American Spirit, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, State Express 555, and Shuang Xi. It employs nearly 50,000 people.

The major indices are higher are midday, led by the Nasdaq which is up more than 2% as of this writing. Stocks are getting some relief as tariffs continue to take form, but might be tempered. Looking ahead, a fresh read on inflation is coming this week. The yield on the 10-year Treasury note is around 4.33%. Oil is near $69 per barrel. Bitcoin is up almost 4% and over $88,000.

The second-largest tobacco company by volume, British American Tobacco sold 505 billion cigarettes in 2024. Its leading brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans in cigarettes. Its ownership of the Camel, Natural American Spirit, and Newport brands are limited to the US. In next-generation products, the company has the Vuse brand in vaping, Glo in heated tobacco, and Velo in modern oral tobacco. The company also owns a 25.5% stake in ITC limited, the largest Indian cigarette company.