Last year, British companies accounted for 11% of global dividends, a percentage bested only by the U.S.
Additionally, DXPS features an almost 17% allocation to the energy sector, an important trait on both the dividend and valuation front. On a book value basis, or a company’s value after stripping out its liabilities, the MSCI World Energy Index recently closed at a 15% discount to the MSCI World Index of developed markets. The gap compared with an average premium of 2.3 percent since 2000, reports David Wilson for Bloomberg.
Royal Dutch Shell (NYSE: RDS-A) and BP (NYSE: BP) combine for nearly 15% of DXPS’ weight. Those stocks trade at significant price-to-book discounts to Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) while sporting sharply higher dividend yields. [Global Energy ETFs Remain Good Deals]
With some important U.K. data points due out this week, DXPS is worth keeping an eye on. Data will “show U.K. house-price growth stayed at slowest pace in 15 months in August and GfK NOP Ltd.’s sentiment index rose from the lowest level since April, according to the median estimates of economists,” the newswire reported.
WisdomTree United Kingdom Hedged Equity Fund