Many Non-U.S. Markets Offer Relatively Attractive Dividend Yields
In many ways, globalization has made the world a much smaller place — but for dividend-focused investors, adopting a global perspective expands the possibilities. Today, companies and industries are increasingly global in terms of their markets, revenue, competitors and means of production. Likewise, the investment universe for blue chip, high-dividend equities is global.
The map shows that the current dividend yields of major equity indexes in Canada, Australia, the U.K., Singapore and Germany compare favorably with the yield in the U.S.
Of course, not all dividend opportunities are equal. Investors should look for companies with attractive competitive positions in their markets that have the ability to sustain dividends. What’s more, with the Fed raising rates in the U.S., investors may want to focus on companies that can grow their dividends, as they stand to fare better in a rising rate environment. While rates are likely to remain low in many other markets, dividends and dividends growth have traditionally been regarded as hallmarks of good corporate governance.
There are strong companies paying healthy — and often growing — dividends in a broad diversity of markets and industries around the world. Among these are Canadian banks Toronto-Dominion Bank and Royal Bank of Canada; U.K. utility company National Grid; and Asian telecom companies China Mobile and Singapore Telecommunications.
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