View the article online at http://citywire.co.uk/money/article/a609805
Look beyond the UK for dividend income
Global dividend income is there for the taking, but which markets offer the best returns?
These dividends are under short-term pressure from falling resources prices, resulting in elevated payout ratios versus cashflow, but if MRB’s mildly positive longer-term pricing forecast proves to be correct then this ratio should rebalance before before dividends need to be cut.
A second wildcard is government policy toward the sector, but this remains a relatively minor risk.
‘All told, the risk-reward is broadly favourable on a multi-year basis. The same holds for Brazilian financials – yields are only moderately above the global benchmark for the sector, but secular trends remain supportive, and dividends should trend higher and support outperformance.’
News sponsored by:
Making the most out of Europe’s potential means seeing things differently. Learn more about how BlackRock’s focused approach to investing in Europe helps investors unlock the continent’s vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
More from us
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Michelle McGagh on Dec 07, 2016 at 17:17