Royal Bank Of Canada (RY) stock forecast and price target

As of the close on September 11, the S&P 500 (SPX), the Nasdaq, and the Nasdaq 100 (QQQ) had all regained their 50-day averages. All three lost the 50-day in mid-August and again last week, so it is encouraging that these major indices are putting up a stand around the key average. At the same time, the three majors remain above their August lows and the pullback has turned into a sideways battle, with a lower high and a higher low in place.

Bank of Canada lifted its target overnight rate to 4.75% in early June (a 22-year high) after staying put since January. Canada experienced an unexpected decline in jobs in May, with the unemployment rate increasing to 5.2%. However, consumer spending has remained strong, up 5.6% in the first quarter. The central bank stated that second-quarter growth is expected to surpass the previously forecasted 1% annualized pace. Although still waiting for more data before possible further hikes in July, the central bank said "members felt that enough data had accumulated to convince them that more restrictive policy was needed." Money markets also predict a 60% probability of another rate hike in July. Disruptions from last month's fierce Canadian wildfires are estimated to shave 0.1%-0.3% off Canada's real GDP for May. But this shock is unlikely to influence the central bank's monetary policy given the short-term impact. Canada's economy has a high exposure to energy, and the recent wildfires resulted in an underperformance in the stocks of Canadian energy producers, compared to the broader Toronto Stock Exchange. Turning to the banking system, Canadian banks have been resilient, as they remained liquid and profitable during the latest banking turmoil.

Stocks moved higher on Thursday after the House passed a bill to raise the debt ceiling. The major indices were all higher in a range of 0.4% to as much as 1.3%. Friday features the jobs report, and at least for a day will swing investor attention back to Fed rate hikes and the status of the U.S. economy.

Stocks rose modestly on Thursday morning after new weekly employment data. The Labor Department said that first-time claims for state unemployment benefits rose by 21,000 to a seasonally adjusted 211,000 for the week ended March 4, above the Reuters consensus forecast of 195,000. General Electric shares rose 8% after the company reaffirmed its 2023 guidance and provided a long-term growth forecast for its aerospace business. On the negative side, SVB Financial plunged 41% after announcing a new stock offering and posting a loss on the sale of its bond portfolio. The Dow rose 0.2%, the S&P 0.2%, and the Nasdaq 0.4%. Crude oil rose to $77 per barrel, while gold rose $12 to $1830 per ounce.

Global stocks are on a run. While the S&P 500 has jumped almost 8% year-to-date, The EAFA Index of large- and mid-cap stocks based in countries other than the U.S. and Canada has risen 9%. Over the past six months, foreign stocks also have outperformed, climbing 11% versus a 1% decline by the U.S. market. The story is different over the past five years, as the S&P 500 has risen 50% and global stocks have fallen 1%. Even so, the long outperformance has given global stocks a valuation advantage, particularly in the area of dividends. The EAFE dividend yield of 2.7% is 100 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks now 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 - who have endured recent wide swings in prices for rate-sensitive equity sectors 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, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus 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 companies offers exposure to eight of the 11 major industrial sectors. The list includes companies from 10 countries.

Stocks were mixed in volatile trading on Monday morning with gains in the Consumer Staples and Industrial sectors and declines in Technology and Consumer Discretionary. Investors will weigh more inflation data this week in the form of the personal consumption expenditures index, along with housing market data and earnings from Nike, FedEx, and Micron Technology. The Dow rose 0.1%, the S&P fell 0.3%, and the Nasdaq fell 0.8%. Crude oil traded near $75 per barrel, while gold rose $2 to $1802 per ounce.

The Bank of Canada raised overnight interest rates by 50 basis points in early December, to 4.25%, and has now lifted rates by a cumulative 400 basis points in 2022. The country continues to face similar conditions as the United States, with high inflation and tight labor markets but also early signs of weakening consumer spending. However, unlike the U.S. Federal Reserve, which recently laid out additional rate hikes, Canada's central bank said rate hikes may be done for now, noting soberly that "growth will essentially stall" through the first half of 2023. This could mark the pivot that investors are seeking, particularly since the Canadian economy has a relatively high exposure to interest-rate-sensitive segments such as housing and financials, and even as Canada's second-largest sector by market cap, Energy, has lost some luster due to falling oil prices. We continue to believe that select companies in Canada, particularly in the Financial sector, offer compelling investment opportunities.

After a huge improvement from mid-July until mid-August, breadth has deteriorated in the second half of August. We saw plenty of breadth thrusts off the June low, so this can be quite common. As we said recently, if the initial rally since mid-June was wave one of a new bull market, wave twos can be nasty. What this does is reset sentiment before the typically much-calmer and more-consistent wave three starts.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based income investors have experienced a high degree of volatility in recent years, as the Federal Reserve since 2018 has embarked on two campaigns to raise interest rates, sandwiched around a desperate program that lowered the federal funds rate to zero in order to help the economy recover from the pandemic. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity sectors 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, robust industry diversification, higher yields, and lower valuations. Argus has recently boosted its global coverage, and recommends the following international dividend stocks. Note this list of 25 companies offers exposure to eight of the 11 major sectors. The list includes companies from 10 countries.

Reading the Tea Leaves on Inflation: CPI Friday

Market breadth remains on the weak side, a bearish sign for stocks. However, some breadth indicators have reached oversold territory and levels that historically have preceded intermediate-term bottoms. There is one big assumption here: that the stock market is still in a bull market and the current decline won't turn into a bear market. As we have been saying, we think this is a correction in a bull market, and not something far worse.

Our rating on the Financial Services sector is Over-Weight. Based on positive vaccine developments and actions from the administration in Washington, interest rates have started to move higher at the long end of the yield curve. We expect banks to benefit from wider net interest margins and lower loan-loss provisions as the economy normalizes. We also expect insurance companies to generate higher income in their investment portfolios. The sector accounts for 10.7% of the S&P 500, down from 16.3% following the exclusion of Real Estate stocks. Over the past five years, the weighting has ranged from 9% to 17%. We think the sector should account for 11%-12% of diversified portfolios. Here is how we use our analysts' Financial Services sector ideas in our Focus List and Model Portfolios. All of the following stocks currently are rated BUY at Argus.

The stock market is stumbling like a reveler exiting a company holiday party (remember those from pre-COVID times?). In the final full trading week of 2021, the S&P 500 slipped 1.94%; the Dow Industrials dropped 1.68%; and the Nasdaq crashed 2.95%. Predictably, growth stocks in the Nasdaq were hit hardest during a week in which the Fed doubled down on its QE taper and laid out its rate-hike timeline for 2022.

Unlike the recent disappointing September employment news in the U.S., Canada scored a substantial win for the month with 157,100 jobs created. That was well above the 65,000 expected and enough to push overall employment back to pre-pandemic levels, with three million jobs recovered. Meanwhile, Canada's jobless rate hit an 18-month low of 6.9%. One factor helping is that the improving global economic recovery plays in particular to the strengths of Canada's two largest sectors: Energy and Financials. After plummeting in the early part of the pandemic, oil prices have rebounded 65% this year and four-fold since bottoming in April 2020. Meanwhile, Treasury yields, which dipped to as low as 0.5% in mid-2020, now stand at more than triple that level. The country's economic improvement has not gone unnoticed in the currency markets, where the Canadian dollar recently topped US$0.80, up from US$0.74 at the depth of the pandemic recession. This makes earnings from Canadian companies more valuable when translated into U.S. dollars, helping valuations. We believe select companies in Canada offer compelling investment opportunities.

The stock market inched lower last week, as Tech stocks underperformed blue chips, though both were off. During Friday's session, the Dow Jones Industrial Average fell 166 points, or 0.48%. The S&P 500 was down 0.91%, and the Nasdaq Composite was also down 0.91%. For the week, the DJIA was down 23 points, or 0.07%, the S&P 500 was down 0.57%, and the Nasdaq Composite was down 0.47%. Year-to-date, the DJIA is up 13.00%, the S&P 500 is up 18.02%, and the Nasdaq Composite is up 16.73%.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive and resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates in order to restore a normal upward slope in the yield curve. In 2020, global investors, fearing the spread of the coronavirus, pushed rates lower still. Now, in 2021, rates might be headed higher in a few months. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as Utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geopolitical turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has recently boosted its global coverage, adding the following BUY-rated international dividend stocks.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years as the endless speculation over the direction of rates has created market-timing headaches. Investors have endured wide swings in prices for rate-sensitive equity sectors 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 segment for U.S. investors.

Stocks were largely flat at midday on Friday, with gains in the Financial and Technology sectors and losses in Healthcare and Real Estate. The University of Michigan said that its consumer sentiment index for the first half of June rose to 86.4, up from a final reading of 82.9 in May and above the Reuters consensus forecast of 84.0. The Dow fell 0.2%, the S&P fell 0.1%, and the Nasdaq was flat. Crude oil traded near $71 per barrel, while gold fell $15 to $1882 per ounce.

Our rating on the Financial Services sector is Over-Weight. With market optimism rising on positive vaccine developments and the new administration in Washington, interest rates have started to move higher at the long end of the yield curve. We expect banks to benefit from wider net-interest margins and lower loan-loss provisions as the economy normalizes, and insurance companies to generate higher income in their investment portfolios. The sector now accounts for 11.4% of the S&P 500. Over the past five years, the weighting has ranged from 10% to 17%. We think the sector should account for 12%-15% of diversified portfolios. Here is how we use our analysts' Financial Services sector ideas in our Focus List and Model portfolios. All of the following stocks are rated BUY at Argus.

The stock market dropped last week, as surging bond yields signaled tighter lending conditions may lie ahead. Tech stocks were the hardest hit and the Nasdaq recorded its worst week since October-though blue chips certainly weren't spared. During Friday's session, the Dow Jones Industrial Average fell 470 points, or 1.50%. The S&P 500 was down 0.48%, and the Nasdaq Composite increased 0.56%. For the week, the DJIA dropped 562 points, or 1.78%, the S&P 500 was down 2.45%, and the Nasdaq Composite was down 4.92%. For the year-to-date, the DJIA is up 1.06%, the S&P 500 is up 1.47%, and the Nasdaq Composite is up 2.36%.

The Canadian economy is projected to have contracted by 5.4% in 2020, a bit worse than the 3.8% for G20 economies overall, according to the OECD. Canada's outsized exposure to the Financial Services and Energy sectors, relative to other countries, has been partly to blame, as low interest rates and oil prices took their toll. The economic lag was evident in Canadian share prices, with Canada's TSX60 posting only a 2.8% rise in 2020, compared to the S&P 500's 16% gain. But in a reversal of fortunes, oil prices and interest rates both have risen substantially off their lows since the latter half of last year, based on signs of an economic rebound and faster inflation. Indeed, the TSX60 is off to a good start, with a year-to-date rise of 3.4% (outpacing the S&P 500's 0.3%). The OECD now projects that Canadian GDP will rebound by 3.5% in 2021, although travel and hospitality segments are expected to remain a drag. Meanwhile, the Canadian housing market has remained a source of strength, aided by low interest rates and shelter-at-home policies that increased demand and elevated home prices. We believe select companies in Canada offer compelling investment opportunities.

We recently upgraded our rating on the Financial Services sector to Over-Weight. With market optimism rising on positive vaccine developments and the presidential transition, interest rates have started to move higher at the long end of the yield curve. We expect banks to benefit from wider net interest margins and lower loan-loss provisions as the economy normalizes, and insurance companies to generate higher income in their investment portfolios. The sector accounts for 10.4% of the S&P 500, down from 16.3% following the exclusion of REIT stocks. Over the past five years, the weighting has ranged from 9% to 17%. We think the sector should account for 11%-12% of diversified portfolios. The Financial sector is underperforming the market thus far in 2020, with a loss of 9.6%. It slightly outperformed in 2019, with a gain of 29.2%, and underperformed in 2018, with a loss of 14.7%. Here is how we use our analysts' Financial Services sector ideas in our Focus List and Model portfolios. All of the following stocks are rated BUY at Argus.

Weekly data from Vickers Stock Research offered cautious sentiment results for multiple weeks starting in mid-November. Sentiment then moved in a more-benign direction last week, but now has pivoted bearishly again.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. 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 segment for U.S. investors. One is a more robust selection of high-quality names. Yields also tend to be higher in overseas markets in general. And finally, valuations can be more attractive.

Widespread lockdowns in April (to slow the coronavirus) took their toll on the Canadian economy, with GDP contracting at an annualized 39% rate in the second quarter. Just-reported July GDP showed a 3% rebound, with even better 6% growth for the manufacturing segment. Low oil prices, with Energy being a dominant sector for the Canadian economy, hindered the recovery. But the Canadian government is pushing for several stimulus measures, including a C$7.5 billion infrastructure plan to help job growth rebound, and an extension of an emergency wage subsidy until next summer. While banks have struggled with low interest rates, consumers are benefiting from record low mortgage rates. The Canadian real estate segment has been a strong performer. With helpful stimulus measures, the Canadian stock market has trailed the S&P 500 only modestly, with the TSX 60 index at around breakeven for the year, versus a 6% rise for the U.S. benchmark. Much of that trailing performance can be attributed to an outsized weighting in the Financial Services and Energy sectors, where low interest rates and oil prices, respectively, have taken a toll. We continue to like Canadian company exposure for diversification.

Widespread lockdowns in April (to slow the coronavirus) took their toll on the Canadian economy, with GDP contracting at an annualized 39% rate in the second quarter. Just-reported July GDP showed a 3% rebound, with even better 6% growth for the manufacturing segment. Low oil prices, with Energy being a dominant sector for the Canadian economy, hindered the recovery. But the Canadian government is pushing for several stimulus measures, including a C$7.5 billion infrastructure plan to help job growth rebound, and an extension of an emergency wage subsidy until next summer. While banks have struggled with low interest rates, consumers are benefiting from record low mortgage rates. The Canadian real estate segment has been a strong performer. With helpful stimulus measures, the Canadian stock market has trailed the S&P 500 only modestly, with the TSX 60 index at around breakeven for the year, versus a 6% rise for the U.S. benchmark. Much of that trailing performance can be attributed to an outsized weighting in the Financial Services and Energy sectors, where low interest rates and oil prices, respectively, have taken a toll. We continue to like Canadian company exposure for diversification.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the U.S. Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The central bank reversed course in 2019, before moving to the sidelines. In 2020, due to the coronavirus, the Fed is back in action, cutting rates, backstopping numerous financial markets and pledging to do "whatever it takes" and "for as long as necessary." Also due to COVID-19, many U.S. companies have cut back or eliminated their dividends in order to preserve capital during the pandemic. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as Utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geo-political turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has boosted its global coverage, adding the following BUY-rated international dividend stocks.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the U.S. Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. The central bank reversed course in 2019, before moving to the sidelines. In 2020, due to the coronavirus, the Fed is back in action, cutting rates, backstopping numerous financial markets and pledging to do "whatever it takes" and "for as long as necessary." Also due to COVID-19, many U.S. companies have cut back or eliminated their dividends in order to preserve capital during the pandemic. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as Utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geo-political turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has boosted its global coverage, adding the following BUY-rated international dividend stocks.

Stocks were mixed on Friday, finishing off a punctuated week that saw all major indexes decline. Riskier equities were hit the hardest, with the prior week's tech sell-off continuing into the 9/8/20 trading week. On Friday, the Dow Jones Industrial Average gained 131 points, or 0.4%. The S&P 500 was roughly flat and the Nasdaq Composite was down 0.6%. For the full week, the Dow was down 1.7%, the S&P 500 was down 2.5% and the Nasdaq was down 4.1%. Year-to-date, the DJIA is down 3.1%, the S&P is up 3.4%, and the Nasdaq is up 21.0%. Over the past 52 weeks, the Dow is up 1.6%, the S&P 500 is up 11.1%, and the Nasdaq is up 32.7%.

Stocks were mixed on Friday, finishing off a punctuated week that saw all major indexes decline. Riskier equities were hit the hardest, with the prior week's tech sell-off continuing into the 9/8/20 trading week. On Friday, the Dow Jones Industrial Average gained 131 points, or 0.4%. The S&P 500 was roughly flat and the Nasdaq Composite was down 0.6%. For the full week, the Dow was down 1.7%, the S&P 500 was down 2.5% and the Nasdaq was down 4.1%. Year-to-date, the DJIA is down 3.1%, the S&P is up 3.4%, and the Nasdaq is up 21.0%. Over the past 52 weeks, the Dow is up 1.6%, the S&P 500 is up 11.1%, and the Nasdaq is up 32.7%.

When the pandemic hit, people waited for things to get back to normal. Now we realize that what lies ahead is a new normal, not the old normal. Investors also are living within a new normal, and the chief characteristic is volatility.

When the pandemic hit, people waited for things to get back to normal. Now we realize that what lies ahead is a new normal, not the old normal. Investors also are living within a new normal, and the chief characteristic is volatility.

Our rating on the Financial Services sector is Market-Weight. The recent rush into safe-haven Treasuries has led to an historical collapse in interest rates, further pressuring banks' net interest margins. We also believe that speculative-grade debt, particularly in the Energy sector, faces viability risks if economic activity remains suppressed for an extended period. The sector accounts for 10.6% of the S&P 500, down from 16.3% following the exclusion of REIT stocks. Over the past five years, the weighting has ranged from 10% to 17%. We think the sector should account for 10%-12% of diversified portfolios. The Financial sector is underperforming the market thus far in 2020. Here is how we use our analysts' Financial Services sector ideas in our Focus List and Model Portfolios. All stocks are rated BUY.

Our rating on the Financial Services sector is Market-Weight. The recent rush into safe-haven Treasuries has led to an historical collapse in interest rates, further pressuring banks' net interest margins. We also believe that speculative-grade debt, particularly in the Energy sector, faces viability risks if economic activity remains suppressed for an extended period. The sector accounts for 10.6% of the S&P 500, down from 16.3% following the exclusion of REIT stocks. Over the past five years, the weighting has ranged from 10% to 17%. We think the sector should account for 10%-12% of diversified portfolios. The Financial sector is underperforming the market thus far in 2020. Here is how we use our analysts' Financial Services sector ideas in our Focus List and Model Portfolios. All stocks are rated BUY.

Royal Bank of Canada is one of the two largest banks in Canada. It is a diversified financial services company, offering personal and commercial banking, wealth-management services, insurance, corporate banking, and capital markets services. The bank is concentrated in Canada, with additional operations in the U.S. and other countries.

The coronavirus selloff continued on Friday morning, with the major indices now falling for seven straight sessions. While monitoring the spread of the virus around the world, investors have also been unsettled by reports of weak preparation in the U.S., including the absence of prompt virus testing and a lack of proper protective clothing and training for federal employees who interacted with quarantined Americans. Overshadowed by virus news and the market selloff, the Commerce Department reported weaker-than-expected consumer spending data for January. Spending rose 0.2% last month, down from 0.4% in December and below the Reuters consensus forecast of 0.3% growth. The S&P fell 3.0%, the Dow 3.4%, and the Nasdaq 2.2%. Crude oil fell more than 5% to $44.50 per barrel, while gold dropped $36 to $1606 per ounce.

The coronavirus selloff continued on Friday morning, with the major indices now falling for seven straight sessions. While monitoring the spread of the virus around the world, investors have also been unsettled by reports of weak preparation in the U.S., including the absence of prompt virus testing and a lack of proper protective clothing and training for federal employees who interacted with quarantined Americans. Overshadowed by virus news and the market selloff, the Commerce Department reported weaker-than-expected consumer spending data for January. Spending rose 0.2% last month, down from 0.4% in December and below the Reuters consensus forecast of 0.3% growth. The S&P fell 3.0%, the Dow 3.4%, and the Nasdaq 2.2%. Crude oil fell more than 5% to $44.50 per barrel, while gold dropped $36 to $1606 per ounce.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates -- causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates, in order to restore a normal upward slope in the yield curve. And in 2020, global investors, fearing the spread of the coronavirus, have pushed rates lower still. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to 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 many positives in this asset class for U.S. investors.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates -- causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates, in order to restore a normal upward slope in the yield curve. And in 2020, global investors, fearing the spread of the coronavirus, have pushed rates lower still. The endless speculation over the direction of rates has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs -- even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to 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 many positives in this asset class for U.S. investors.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the U.S. Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive, resulting in a wild ride for supposedly stable U.S. high-income equities. Then the central bank reversed course in 2019, before moving to the sidelines (we shall see) in 2020. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as utilities, REITs and MLPs - even as generally positive industry fundamentals remained largely intact. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geopolitical turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has recently boosted its global coverage, adding the following BUY-rated international dividend stocks.