Gavekal Capital: Where Does it Pay Dividends to Chase the Yield?

Thursday, March 13, 2014

Where Does it Pay Dividends to Chase the Yield?

Over the last year, dividend yield ranks as one of most important factors in MSCI World stock performance:

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Which begs the question: where are the most positive dividend yield trends?  Currently, the Telecommunication Services sector has the highest dividend yield in the MSCI World Index:

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However, the Telecom sector also happens to have the largest portion of its companies cutting dividends-- versus Consumer Staples, where more than 76% of constituents are raising their dividends:

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In addition, we find that Consumer Staples companies have increased their dividends more consistently over the last three, five, and ten-year periods than any other sector:

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Of course, each region has its own unique trends:

Asia-Pacific
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Europe
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North America
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