Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.
A recent study from the Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023). Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
Most dividend investors seek solid passive income streams of quality dividend stocks. Passive income is a steady stream of unearned income that doesn’t require active traditional work. Shared ideas for earning passive income include investments, real estate, or side hustles.
We decided to screen the stocks that trade over the counter (OTC) and look for dividend ideas that can produce solid passive income. Many international companies’ foreign ordinary shares trade on the OTC market in the U.S. These companies are listed on a foreign exchange and trade in the U.S. via broker-dealer networks.
Five look like outstanding ideas for more aggressive dividend stock investors, and all make sense for those looking to avoid crowded names.
Aker BP ASA
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This off-the-radar stock is based in Norway and offers a massive 9.10% dividend. Aker BP ASA (OTC: AKRBF) explores for, develops, and produces oil and gas on the Norwegian Continental Shelf.
It operates in these fields currently:
- Alvheim,
- Edvard Grieg,
- Ivar Aasen,
- Valhall,
- Skarv
- Ula
In the APA 2023 licensing round, the Norwegian authorities offered Aker BP ownership interest in 27 exploration licenses on the Norwegian continental shelf. For 17 of the licenses, Aker BP is also granted operatorship. The award consolidates the company’s position as the most active independent exploration company on the NCS.
Aker BP was offered exploration acreage in:
- All areas of the Norwegian continental shelf
- The North Sea,
- The Norwegian Sea
- The Barents Sea
Avance Gas Holding Ltd.
Source: Photo by Sean Gallup / Getty Images
Trading at a cheap 6.5 times price to earnings of 6.5 the company also delivers a massive 22.7% dividend. Avance Gas Holding Ltd. (OTC: AVACF) together with its subsidiaries, engages in the transportation of liquefied petroleum gas (LPG).
The company transports LPG from the Persian Gulf and the United States Gulf/the United States East Coast to destinations in Europe, South America, India, and Asia.
In March the company announced the successful sale of newbuilding hull 2367 with intended name Avance Castor for a cash consideration of $120 million less broker commission as previously announced in December 2023.
Avance Gas expects to record a book gain on sale and cash release following the repayment of bank financing of $36 million and $61 million, respectively. The sale of the sister ship, newbuilding hull 2368 with intended name Avance Pollux, is scheduled to take place in the first half of May 2024. This sale is also expected to result in a book gain and cash release of $36 million and $60 million, respectively.
CK Hutchinson Holdings
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Based in Hong Kong, this industry giant has significant upside potential and offers a stellar 7.57% dividend. C.K. Hutchinson Holdings Limited (OTC: CKHUY) is an investment holding company that operates in ports and related services, retail, infrastructure, and telecommunications businesses in Hong Kong and internationally.
The company invests in, develops, and operates ports, with 293 berths in 51 ports in 25 countries. It also provides logistics and transportation-related services, including cruise ship terminals, distribution centers, river trade, and ship repair facilities.
It also operates retail brands with stores that sell personal care products, health and beauty products, food and fine wines, consumer electronics, and electrical appliances.
It also operates supermarkets, manufactures and distributes bottled water and other beverages under the Watsons Water and Mr. Juicy brands.
In addition, the company invests in:
- Energy infrastructure
- Transportation infrastructure
- Water infrastructure
- Waste management
- Waste-to-energy
- Household infrastructure
- Infrastructure-related businesses
Further, it provides mobile telecommunications and data services and operates as an integrated energy company.
It also researches, develops, manufactures, commercializes, markets, and sells:
- Nutraceuticals
- Pharmaceuticals and agriculture-related products
- Provides marine construction and ship repair yard
- General engineering and tug operations
- Water supply and sewerage
- Electricity generation and distribution
- Gas distribution
- Aircraft maintenance services
- Leases rolling stocks.
Mercedes-Benz Group AG
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Mercedes-Benz combines luxury with performance across the full line of models, including luxury sedans, SUVs, coupes, roadsters, convertibles & more.
The German luxury car giant pays investors a 7.16% dividend. Mercedes-Benz Group AG (OTC: MBGAF) is an automotive company in Germany and internationally.
It operates through three segments:
- Mercedes-Benz Cars
- Mercedes-Benz Vans
- Mercedes-Benz Mobility
The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and G-Class brands, as well as related spare parts and accessories.
It also provides:
- Financing
- Leasing
- Car subscription and rental
- Fleet management
- Insurance Brokerage
- Mobility services
- Digital services for charging and payment
The company, formerly known as Daimler AG, changed its name to Mercedes-Benz Group AG in February 2022. Founded in 1886, Mercedes-Benz Group AG has its headquarters in Stuttgart, Germany.
Volkswagen AG
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Volkswagen AG is a German public multinational conglomerate manufacturer of passenger and commercial vehicles, motorcycles, engines, and turbomachinery.
Volkswagen AG (OTC: VWAPY) is a bargain at 4.4 times trailing earnings and offers a 7.22% dividend. At current trading levels, this auto giant is a huge steal.
Volkswagen AG manufactures and sells automobiles in:
- Germany
- Europe
- North America
- South America
- Asia-Pacific
- internationally
The company operates through four segments:
- Passenger Cars and Light Commercial Vehicles
- Commercial Vehicles
- Power Engineering
- Financial Services
The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines, and vehicle software; produces and sells passenger cars and light commercial vehicles and related parts; and offers motorcycles.
The Commercial Vehicles segment develops, produces, and sells trucks and buses and offers parts and related services.
The Power Engineering segment offers large-bore diesel engines, turbomachinery, and propulsion components.
The Financial Services segment provides dealership and customer financing, leasing, direct banking and insurance, fleet management, and mobility services.
It sells products under these brands:
- Volkswagen Passenger Cars
- Koda
- SEAT/CUPRA
- Volkswagen Commercial Vehicles
- Audi
- Lamborghini
- Bentley
- Ducati
- Porsche
- Scania
- MAN
- Volkswagen Truck & Bus
- Navistar commercial vehicles
- Bugatti brands
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