Saturday, March 07, 2015

Liechtenstein Stocks from One of the Smallest Countries in the World

Are you familiar with Liechtenstein? It is one of the world's smallest countries, in both area and population, in company with Andorra and San Marino. However, despite its size, it has one of the most stable economies in the world and is ranked number 2 in terms of Gross Domestic Product per capita, right after Qatar and just ahead of Macau.

Liechtenstein has the second lowest tax rate in Europe at 12.5%, which is one of the reasons that there are more registered companies in the country than citizens. Also, the personal income tax base rate is 1.2%.

Here's a bit of trivia for you. The country is the largest producer of false teeth in the world!

So what if an investor wants to invest in this country? For Americans, there is basically only one way. There is one publicly traded Liechtenstein company that trades in the United States and that is Liechtensteinische Landesbank (LCHTF), which trades over-the-counter. It also trades on the Swiss Stock Exchange. The bank, which was founded in 1861, is based in Vaduz, the country's capital.

The stock trades at 14.1 times trailing earnings and pays a yield of 3.97%. The company will be reporting its fiscal 2014 earnings on March 10.

The stock very rarely trades in the US, so investors that have any interest in the stock should try to get it through the Swiss Exchange.

Disclosure: Author didn't own any of the above at the time the article was written.


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