10 British Stocks To Consider

This article explores 10 British stocks to hold not only for European market diversification, but also a global diversification since they globally renowned brands. British stocks generally pay higher dividend compared to their American counterparts, but tend to fluctuate, based on the exchange rate. Another caveat is that some companies only pay dividends once or twice a year, as opposed to the normal four times a year. The stocks discussed here all listed on the US exchanges trading as ADRs.

The advantage of buying British stocks for a dividend play is that American and Canadian investors can take advantage of a tax break. The tax treaty between the countries allows companies to pay out the dividends without any withholding taxes. Some stocks described below are originally companies from other countries (BHP is Australian, Royal Dutch Shell and Unilever are companies from the Netherlands), but because they are registered in the UK, can be traded as UK-listed companies offering investors the said tax break.

Let’s jump into the details of the 10 British stocks to consider.

AstraZeneca plc (AZN) is a global pharmaceutical company. AstraZeneca discovers, develops and commercializes prescription medicines for six areas of healthcare: Cardiovascular, gastrointestinal, infection, neuroscience, oncology, and respiratory and inflammation. AZN has a 5-yr average yield of 3.2% and a 5-yr dividend growth rate (DGR) of 3.86%.

BHP Billiton (BHP) (BBL) is a diversified natural resources company. The company operates in nine segments: petroleum, aluminum, base metals, diamonds and specialty products, stainless steel materials, iron ore, manganese, metallurgical coal and energy coal. BHP Billiton trades under two ADR symbols NYSE: BHP, which is registered in Australia (Americans and Canadians also get the same tax treatment as described above – no withholding taxes when held under retirement accounts) and NYSE: BBL which is registered in the UK. BHP/BBL has been raising dividends for 12 years, has 5-yr average yield of 3.5% and 5-yr DGR of 8.1%.