Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Building Blocks Channel
  2. Emerging Markets Dividend Renaissance Has Arrived
ETF Building Blocks Channel
Share

Emerging Markets Dividend Renaissance Has Arrived

Tom LydonNov 23, 2021
2021-11-23

The recent round of positive dividend news centers largely on U.S. stocks, but investors shouldn’t sleep on rising payouts in other parts of the world.

Data confirm emerging markets payouts are perking up in a big way, meaning it could be an opportune time for investors to revisit exchange traded funds such as the ALPS Emerging Sector Dogs ETF (EDOG A-).

The third-quarter reading of the Janus Henderson Global Dividend Index confirms the allure of the emerging markets dividend opportunity, potentially giving investors reason to evaluate EDOG. In the September quarter, headline payout growth in developing economies was 31%, according to the index. That’s nearly triple the dividend growth rate of 10.5% in North America. In Asia ex-Japan, a region including plenty of emerging markets, dividends surged 37.9%.

EDOG, which tracks the S-Network® Emerging Sector Dividend Dogs Index, features exposure to six Asian economies. Led by Thailand, those countries combine for almost half of EDOG’s geographic weight.

“China’s big dividend season takes place in the third quarter. Payouts rose to $32.6 billion, an increase of 15.7% on an underlying basis, putting Chinese companies on track to deliver record dividends this year for the second year running,” according to Janus Henderson.

EDOG also has some right place, right time sector allocations with which to capitalize on new-found emerging markets dividend ebullience.

“The lifting of constraints on banking dividends, along with lower-than-expected loan impairments, and hence higher profits, pushed overall payouts from financials up by a third on an underlying basis. Collectively they accounted for a quarter of the Q3 total,” adds Janus Henderson.

Another source of global dividend strength, including emerging markets, is the energy sector, a group EDOG has ample exposure with the help of a 10.7% weight to Russia. Financial services and energy stocks combine for almost 20% of EDOG’s roster.

In the third quarter, seven of the world’s top 20 dividend payers were companies based in developing economies. That’s the same amount on that list hailing from the U.S. EDOG yields 3.03%. That’s more than double the trailing 12-month yield on the MSCI Emerging Markets Index.

Other emerging markets dividend ETFs include the ProShares MSCI Emerging Markets Dividend Growers ETF (EMDV ), the iShares Emerging Markets Dividend ETF (DVYE A-), and the WisdomTree Emerging Markets Equity Income Fund (DEM A-).

For more news, information, and strategy, visit the ETF Building Blocks Channel.

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X