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.’
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
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by Gavin Lumsden on Mar 07, 2014 at 18:53