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Bespoke: US Dividend Yields Significantly Lower Than Rest Of World

TedTed
in Fund Discussions
FYI: When it comes to dividends, the US may not be the best country for investors to look for a higher yield. US equities currently have a dividend yield of only 1.98%, well below the average of 3.51% for the 22 other major global economies that we track in our Global Macro Dashboard. The only country with a lower dividend yield is India with a 1.21% yield. A potential reason for this comparatively low yield in these two countries is simply higher equity prices. India runs away with the highest valuation of their equities with a P/E of 28.56; the highest among the 23 countries in our Global Macro Dashboard. The US similarly is not cheap relative to the rest of the world as it possesses the fourth highest valuation of 18.33x earnings. That compares to a world average of only 15.72.
Regards,
Ted
https://www.bespokepremium.com/interactive/posts/think-big-blog/us-dividend-yields-significantly-lower-than-rest-of-world

Comments

  • MarkMark
    So if the dividend paying equity(ies) I own increase in price the yield goes down. Who knew.
  • MikeMMikeM
    So what are some good global dividend funds or ETFs?
  • Old_Skeet
    edited June 2019
    Not saying these are the best global dividend payers; but, it is what I own in my global equity and global hybrid sleeves found in the growth & income area of my portfolio. In my global equity sleeve I own DWGAX which has a dividend yield of 2.04%, CWGIX which has a dividend yield of 2.16%, DEQAX which has a dividend yield of 2.36% and EADIX which has a dividend yield of 3.67%. In my global hybrid sleeve I own CAIBX whcih as a dividend yield of 3.15%, TEQIX which has a dividend yield of 3.71% and TIBAX which has a dividend yield of 4.35%. All these funds pay quarterly except TEQIX which pays annually and EADIX which pays monthly.

    My three highest dividend paying funds within my portfolio are PCLAX with a dividend yield of 17.23%, PMAIX with a dividend yield of 5.77% and FKINX with a dividend yield of 5.33%. PCLAX pays quarterly while PMAIX and FKINX pays monthly.

    My portfolio contains four areas of investment which includes a cash area, an income area, a growth & income area and a growth area and overall has a dividend yield of better than 3.2%. When I include capital gain distributions it tops out at better than a 5% distribution yield. My current asset allocation is 20% cash, 40% income and 40% equity. This portfolio generates more than enough income to meet my needs plus I have some residual left over for new investment opportunities. Going forward, should I not be able to make enough interest in my cash area to offset inflation then I'll reduce cash by 5% and raise my income area by 5%.

    My investment focus since I retired five years ago has been to invest for income generation over growth of principal. However, since I retired I have also been able to grow my principal.
  • catch22catch22
    @Mark
    When I read a headline like this one and knowing what we know about the current global market circumstances; I always try to presume that this type of article will help the new (er) investor have a better understanding of how money things function.
  • TedTed
    @Poster: " this type of article will help the new (er) investor" That's why had you in mind when I linked it.
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