Look beyond the UK for dividend income

Global dividend income is there for the taking, but which markets offer the best returns?

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by David Campbell on Aug 08, 2012 at 05:01

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.’

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7 comments so far. Why not have your say?

There are some very good dividends available from the Asian Region.

Aberdeen have a fund for just such a purpose.

Needless to say it is called the Asian Income Fund

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There are some very good dividends available from the Asian Region.

Aberdeen have a fund for just such a purpose.

Needless to say it is called the Asian Income Fund

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Take a look at Canada! Far less risky than Europe or the USA.

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Do you not think that there might be risk of currency loss there now (canada).

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Worth looking at Prusik Asian Income and Veritas Global Equity Funds.

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The financial world is full of half-truths and misleading comments.

‘Very high yields in the Spanish and Portuguese telecom sector highlight that current dividends are unsustainable.’

That may be true but I doubt it. I suspect that the share price is very low because of the widespread adverse comment about the peripheral countries and the tendency for the markets to make foolish blanket knee-jerk responses to any news, (e.g. Standard Chartered). I am sure the Spanish & Portuguese will continue to phone each other and that sector is relatively safe. If I had more detailed knowledge I would consider investing.

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ICD

Aug 08, 2012 at 11:01

Have now discovered that Telefonica's yield is zero, so I won't be investing in them!

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