Emerging markets have certainly been the place to be. In the past 10 years, the iShares MSCI Emerging Markets Index (NYSE: EEM) has returned an astounding average of +21.5% a year, compared to +5.1% for the S&P 500. However, this outperformance has been lost on many dividend investors who have likely considered emerging markets an exotic indulgence of growth investors. But emerging markets are an increasing force on the world stage that can’t be ignored — even by income investors. Read More
Emerging markets have certainly been the place to be. In the past 10 years, the iShares MSCI Emerging Markets Index (NYSE: EEM) has returned an astounding average of +21.5% a year, compared to +5.1% for the S&P 500. However, this outperformance has been lost on many dividend investors who have likely considered emerging markets an exotic indulgence of growth investors. But emerging markets are an increasing force on the world stage that can’t be ignored — even by income investors. These nations represent 40% of the world’s population and already control two thirds of its industrial output. And their influence is growing. The International Monetary Fund (IMF) says emerging markets accounted for nearly all of the world’s growth last year, and they’re forecasted to grow at nearly three times the pace of the rest of the world in 2010. Investors don’t normally associate dividends with emerging markets. Many companies in these fast growing economies have used excess cash to fund expansions rather than pay dividends in the past. But things… Read More