Sanofi (SNY)

U.S. stocks are trading near record highs. But despite that strong performance, U.S. shares are being outshined by global emerging stocks. The leading emerging market ETF (EEM) has gained 22% year to date compared to 13% for the S&P 500. By comparison, a leading industrialized global stock market index, the ETF EAFE (EFA), is up 8%. With continued worries about the U.S. economy and rising interest rates, global stocks, and especially those that pay dividends, are an option for investors. The lagging U.S. markets represent quite a change from the recent record. Over the past five years, the S&P 500 has advanced 79% compared to a 33% gain for the EAFE and a 32% gain for the EEM. But the underperformance has given global stocks a valuation advantage, particularly in the area of dividends. Consider that the EAFE dividend yield of 3.14% is roughly 210 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks continue to offer opportunity. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Still, 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 asset class for U.S. investors, including a wide selection of companies that pay dividends, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. The following is a list of Argus BUY-rated international stocks that have a spot in our International Growth & Income Model Portfolio.

Sanofi develops and markets drugs with a concentration in immunology, vaccines, and rare diseases. Although the company offers a diverse array of drugs, its highest-revenue product, Dupixent, accounts for over 30% of total sales. Profits for this immunology blockbuster drug are shared with Regeneron. About 45% of total revenue comes from the United States, 20% from Europe, and 6% from China.

Sanofi develops and markets drugs with a concentration in immunology, vaccines, and rare diseases. Although the company offers a diverse array of drugs, its highest-revenue product, Dupixent, accounts for over 30% of total sales. Profits for this immunology blockbuster drug are shared with Regeneron. About 45% of total revenue comes from the United States, 20% from Europe, and 6% from China.

For the past decade-plus, the performance record has favored growth stocks over value. Yet the tide may be changing. In 2025, value stocks and growth stocks had similar returns, with growth advancing 13.8% and value returning 13.6%. More than halfway through 2026, value stocks have climbed 16.8% while growth stocks have returned 5.7%. The post COVID-19 economy gave a lift to some of the cyclical companies (energy and regional banks), and value stocks outpaced growth stocks that year. While growth stocks led for a few years after that, history has shown other instances where value stocks have outperformed. Value stocks tend to be more resilient in times of market uncertainty and higher volatility as they are less likely to overreact to economic news. Another factor, in our view, has been the level of interest rates. If interest rates are high, discount rates will be high, and future profits will be worth less, creating an unfavorable environment for growth stocks. In any event, the value sector is the place to achieve income.