Earn Up to 7.5% from These High-Yield Stocks Income Investors 2017-04-20 12:59:02 high yield stocks dividend stocks Spain iShares MSCI Spain Capped Fund NYSE:EWP Banco Bilbao Vizcaya Argentaria SA (ADR) Banco Santander Gas Natural SDG ADR Today's chart highlights our favorite place for high yield stocks... Spain. These five dividend stocks yield up to 7.5%. Dividend Stocks,News https://www.incomeinvestors.com/wp-content/uploads/2017/04/EWP-Stock-150x150.jpg

Earn Up to 7.5% from These High-Yield Stocks

High Yield Stocks Pay Up to 7.5%

Today’s chart highlights our favorite place for high-yield stocks: Spain.

Over the past few years, investors have given up on the country after a reckless property bubble sent the economy into a tailspin. But based on recent reports, that situation appears to be improving.

Spain is now the fastest-growing country in Europe. And for investors willing to comb through the rubble, some quality blue-chip stocks still yield from five to up to seven percent. You should pay attention for a couple of reasons.

First, business has recovered. Madrid made a lot of tough decisions to get the country back on its feet, such as cutting the deficit, reforming labor markets, and overhauling the banking system. Nine years after a long, bitter recession, the country’s economy has returned to where it was in 2008. (Source: “Spain: Boom to bust and back again,” Financial Times, April 6, 2017.)

More important than the headline numbers is the manufacturing boom. Since 2010, labor costs have fallen 14%. Investment has flooded into Spain, which is now the cheapest place in Western Europe to open a factory.

Better still, shares still look cheap. Spanish stocks—as measured by the iShares MSCI Spain Capped Fund (NYSE:EWP)—have gone nowhere for 20 years. Investors have marked shares at fire sale prices, with equities trading near record-low multiples.

We’ve seen this kind of setup before. The last time shares looked this cheap was 1995. Over the next four years, Spanish stocks soared over 250%.

The situation has left some big yields, too. The country’s entire stock market pays out 4.6%, representing one of the highest yields in Europe.

If you do some extra digging, you can find even bigger payouts. Wonderful businesses like Telefonica S.A. (ADR) (NYSE:TEF), Gas Natural SDG ADR (OTCMKTS:GASNY), and Grifols SA, Barcelona (NASDAQ:GRFS) have been marked down. Some of these names pay out yields as high as 7.5%.

Company

Market Cap

Yield

Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA)

$48.5B

7.5%

Banco Santander, S.A. (ADR) (NYSE:SAN)

$84.0B

4.0%

Grifols SA, Barcelona (NASDAQ:GRFS)

$5.2B

1.4%

Telefonica S.A. (ADR) (NYSE:TEF)

$54.6B

6.6%

Gas Natural SDG ADR (OTCMKTS:GASNY)

$21.3B

4.9%

Source: Google Finance

Investors, though, have started to catch on. Last week, Spain’s IBEX 35 Index hit a fresh 52-week high. Over the past nine months, the market has soared 32%.

There could be more room to run. Shares still represent a bargain, with the index trading near 1998 prices. If you want more income, take a second look at Spain.

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