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.

Stocks gave up early gains on Monday morning as investors weighed rising coronavirus cases and prospects for a last-minute pre-election stimulus deal. On the earnings front, Halliburton shares rose more than 3% after the company posted better-than-expected adjusted 3Q EPS, but missed the consensus revenue forecast. The Dow was flat, the S&P rose 0.1%, and the Nasdaq rose 0.1%. Crude oil traded near $41 per barrel, while gold rose $5 to $1912 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 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.

This edition features the U.S. election's impact on energy infrastructure; a coronavirus update on the auto sector; the generic drug market; and notes from AMD, Morgan Stanley, and Disney.

Stocks rose on Friday morning, adding to Thursday's gains, amid cautious optimism about an eventual fiscal stimulus deal in Washington. The positive sentiment also reflected diminishing prospects for a contested presidential election, as Joe Biden continued to widen his lead in both national and swing state polls. The Dow rose 0.4%, the S&P 0.6%, and the Nasdaq 1.0%. Crude oil fell slightly to about $41 per barrel, while gold rose $39 to $1934 per ounce.