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.

Formed in 1997 through the merger of Grand Metropolitan and Guinness, Diageo is the largest distiller globally by sales. Diageo acquired some of the Seagram assets in 2001, which gave it brands such as Captain Morgan rum and Crown Royal Canadian whisky. Since then, mergers and acquisitions have mostly been bolt-on in nature, plugging gaps in the company’s product and geographic portfolio. The firm has also shed noncore brands over the years, including the majority of its wine assets in 2015.

Diageo plc manufactures and markets alcoholic beverages worldwide. The company offers a variety of brands in the spirits, beer, cider, and wine categories. DEO's brands include Johnnie Walker, Crown Royal, J&B, and Windsor whiskies; Smirnoff, Ciroc, and Ketel One vodkas; and Captain Morgan, Don Julio, Tanqueray, and Guinness. Diageo plc was established in 1886 and is based in London.

Despite volatile headlines, price action has tightened up since mid-January. For the S&P 500 (SPX), price is sitting in the top half of a range going back to early November. While certainly not textbook or picture perfect, the index could be tracing out a complex and non-typical bullish cup-with-handle formation. To complete the pattern, a strong break above the all-time closing high of 6,119 is needed -- preferably with some immediate follow-through action. The current trading range is about 355 points wide, so a breakout could open the door for an initial measured move to the 6,300 area and possibly higher. Since mid-January, the price range for the SPX has constricted to about 200 points and some of the short- to intermediate-term moving averages have started to tighten. Price at the top of a range along with slim volatility often is a bullish sign that an index or individual stock is setting up for a breakout move. The SPX also is in a favorable spot based on price channels and volatility bands. On the daily chart, price lies between the middle and upper Bollinger Bands and is in the same spot regarding the 20-day price channels. On the weekly chart, the SPX has been trending between the middle and upper weekly Bollinger Bands and between the middle and upper 20-week price channels on a closing basis since November 2023. The QQQ has seen less strength, trading between the weekly Bollinger Bands and weekly price channels since early September.