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.

The Royal Bank of Canada is one of Canada's largest banks. It is also one of the largest banks in the world, with a market capitalization of $161 billion. The company has 95,000 employees and nearly 1,300 banking branches in 29 countries. Our rating on the Financial sector is Over-Weight. We look for a recovery in fee-based businesses, bond issuance, and M&A as the rate cycle winds down. At the same time, with inflation running hot, companies may cut back on hiring and investments, and thus on business loans.

Markets are inching their way higher as we approach the hour that Wall Street will get more clarity on new tariffs. The White House says that details are coming at 4pm. Today is the day that President Trump has identified as Liberation Day. So far we've heard this means broader, sweeping tariffs on more countries, beyond Mexico, China, and Canada, where Trump has focused so far. The yield on the 10-year Treasury note is at 4.15%. Oil is $71 per barrel. Bitcoin is near $86,000.

The Bank of Canada lowered interest rates in late January, easing the overnight rate by 25 basis points to 3.00% (its sixth consecutive rate cut). The stimulus appears to be working, with the Canadian unemployment rate declining to 6.6% in January from 6.9% late last year, though still well above the 4.1% rate in the U.S. Meanwhile, trade uncertainty -- after the Trump administration instituted broad-based tariffs on the U.S.'s northern (and southern) neighbor, ostensibly to rein in the flow of illegal drugs and to encourage more onshore manufacturing -- has created a high level of uncertainty for those making economic forecasts. The most-recent tariff salvo calls for 50% tariffs on Canadian steel and aluminum, and the potential for elevated tariffs on automobiles. For its part, Canada's central bank, in lowering rates, said "if broad-based and significant tariffs were imposed, the resilience of Canada's economy would be tested." For now, many economists see economic growth in Canada falling to under 2% in 2025, despite expectations for another 50 basis points of interest-rate reductions through year end. For all the turmoil, Canada's TSX index is off only about 6% from its recent peak. Among our Canadian coverage, we believe the Financial sector, where Argus has an Over-Weight stance, remains among the better opportunities for Canadian stocks, as a rebound in loan growth and an expected improvement in capital markets activity helps revenues.