Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Foreign Stock Dividends Look Compelling In Today’s Climate
Posted Under: Stock Dividends

 
View from the Observation Deck 
  1. Today's blog post is intended to make investors aware of the fact that stock dividend yields are considerably more attractive in foreign markets than in the U.S.
  2. The yield on the S&P 500 has actually declined from 2.23% in 1995 to 1.92% today. One of the main contributing factors for the slide has been a reduction in the payout ratio.
  3. The dividend payout-ratio (% of a dollar's worth of earnings paid out as a dividend) for the S&P 500 currently stands at 35.00%, according to Bloomberg. S&P Dow Jones Indices quotes a historical average of 52.00%.
  4. As indicated in the chart, the yields on the MSCI World (ex U.S.) Index and the MSCI Europe Index have both been trending higher since 1995.
  5. The current dividend payout-ratios on the MSCI World (ex U.S.) and MSCI Europe indices are 51.77% and 54.99%, respectively. Both are very close to the 52.00% historical average in the U.S.
  6. Bloomberg's (2014 & 2015) estimated earnings growth rates for the S&P 500, MSCI World (ex U.S.) Index and MSCI Europe Index are as follows (as of 6/5): S&P 500 (8.51% & 11.15%); MSCI World (ex U.S.) Index (37.39% & 11.49%); and MSCI Europe Index (37.55% & 12.59%). 
The chart and performance data referenced are for illustrative purposes only and not indicative of any actual investment. The index performance data excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. There can be no assurance that any of the projections cited will occur. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance. The MSCI World (ex U.S. ) Index is a free-float weighted index designed to measure the equity market performance of developed markets. The MSCI Europe Index is a free-float weighted index designed to measure the performance of the developed equity markets in Europe.
 
To Download a PDF of this post, please click here.
Posted on Thursday, June 5, 2014 @ 3:16 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Welcome to the Middle Innings
Recovery In Financial Stocks Slower Than The Broader Market
US Economy and Credit Markets Week Ended May 30, 2014
US Stocks Week Ended May 30, 2014
Reasons for Market Performance
Cyclical Sectors Quietly Leading The Market Higher
Keeping An Eye On Bond Prices
US Economy and Credit Markets Week Ended May 23, 2014
US Stocks Week Ended May 23, 2014
Emerging Market Equities Showing Signs Of Life In 2014
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.