Investment Advice

Top worldwide stocks with steady, long-term growth and increasing income

Top worldwide stocks with steady, long-term growth and increasing income
Co-manager of the Murray International Trust Samantha Fitzpatrick chooses three international stocks to invest in

Murray International Trust is a globally diversified investment trust that seeks to provide both long-term capital growth and an alluring and increasing income. The fund is a unique complement to more growth-focused global funds because it avoids overexposure to low-yielding stocks by investing in businesses with steady and increasing cash flows.

Having raised its dividend for 20 years in a row, Murray International has been named a "dividend hero" by the Association of Investment Companies (AIC). It is run by a seasoned group of Aberdeen employees who have collaborated for more than 20 years, and it is backed by researchers assigned to important developed and emerging markets who assist in spotting excellent opportunities wherever they present themselves.

Worldwide stocks are relying on expansion.

The largest domestic bank in Italy, Intesa Sanpaolo (Milan: ISP), provides investment, corporate, and retail banking services as well as wealth management and insurance. A cost-to-income ratio of 38% in the first quarter of 2025 is among the lowest in Europe, demonstrating the management's strong operational efficiency.

It is good to strategically concentrate on areas with higher growth and returns, like savings and wealth. A supportive backdrop provided by declining interest rates has allowed management to maintain its optimism and raise guidance on multiple occasions. We started a position in early April, capitalizing on market weakness around "Liberation Day" and concerns about a worldwide recession. Despite the stock's recent strong performance, we still think it's a good compounder. Its strong capital position also underpins a premium dividend yield of 7%, which increases its allure even more.

Johnnie Walker, Talisker, Smirnoff, Tanqueray, Don Julio, Casamigos, and Guinness are just a few of the well-known brands within the portfolio of Diageo (LSE: DGE), a prominent alcoholic beverage company based in the United Kingdom and one of the biggest producers of spirits worldwide. After a post-Covid boom, the company's share price was cut in half due to a number of issues that have plagued it since 2022, including excessive inventory, operational errors, declining consumer demand, the threat of rising tariffs, and changing drinking habits.

Along with criticism of the management team, there has been much discussion about whether these headwinds are structural or cyclical in nature. After giving it some thought, we increased the trust's holdings. We think Diageo's global reach, robust brand, and breadth, along with its capacity for innovation, will provide long-term value, even though more patience might be needed.

The headquarters of the multinational IT services and consulting firm Infosys (Mumbai: INFY) are located in India. Cloud computing, AI and automation, data analytics, cybersecurity, and digital transformation are among the services it provides to a variety of industries, including manufacturing, retail, healthcare, and finance.

Due to clients postponing discretionary projects due to macroeconomic uncertainty, the share price has underperformed this year. However, the management team just affirmed that the pipeline for cost-cutting initiatives is still strong, and Infosys is an expert in this field. We think the company's foray into AI-related services has a lot of potential, and the current share price makes it a desirable time for long-term investors to invest.