International stocks are having a better year compared to the S&P 500, and some global companies are even providing appealing dividends. The S&P 500 has only grown by around 2% in 2025, which is a stark contrast to the impressive double-digit gains seen in 2023 and 2024. Factors like tariff policies, concerns about interest rate movements, and recent events in the Middle East have led to significant fluctuations in the stock market. After two strong years for the S&P 500, U.S. investors might want to reconsider their international investments to diversify beyond the dominance of major tech names in the U.S. market.
Margherita Chen, a certified financial planner and CEO of Blue Ocean Global Wealth, pointed out that while international stocks performed poorly last year, they’ve really shone this year. For example, the Vanguard FTSE All-World Ex-U.S. ETF has returned about 5.5% in 2024 and has jumped 14% this year. Those looking for international exposure, particularly for dividends, may want to look into options like the First Trust Target Global Dividend Leaders portfolio, which combines real estate investment trusts with both domestic and international stocks.
CNBC Pro has analyzed this portfolio to highlight some international stocks that have received favorable ratings from analysts, with some showing over a 20% advantage based on consensus price targets. Notably, Copa Holdings, a Panamanian airline, has caught attention. In 2025, its U.S. trading stocks climbed more than 16%, boasting a dividend yield of approximately 6.3%. Over 90% of analysts covering Copa recommend buying or have an overweight stance, with a consensus price target indicating a potential increase of over 50%. Analyst Savanty Syth from Raymond James praised Copa’s solid first-quarter performance, noting revenue per share exceeded expectations.
However, he mentioned that, while demand seems stable in North America and the Caribbean, Mexico and Central America face challenges, particularly from competition with Avianca. Syth set a target price of $145 for Copa, suggesting a potential rise of over 41%.
Vale, a Brazilian mining company, is also garnering interest on Wall Street, with nearly 60% of analysts rating its stock as a buy or overweight, and a target price suggesting a 32% upside. Bank of America recently upgraded Vale’s stock, with analyst Caio Ribeiro noting significant improvements in its fundamentals, partly due to the resolution of a railway dispute and new leadership.
Vale’s dividend yield stands at an impressive 9.1%, and its stock has seen a modest 3% rise in 2025. Lastly, Chilean Ratum Air Group is on the radar as well, with a projected 37% increase this year and a dividend yield of 2.7%. Analysts from Morgan Stanley have noted an increase in airline traffic, with capacity growth above expectations.
