A Higher Dividend Yield Can Come from Weighting by Dividends
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• More than 2x the Dividend Yield: The WisdomTree Europe Hedged SmallCap Equity Index has a dividend yield that was more than twice that of U.S. small caps. As mentioned earlier, this can signal an important potential edge in terms of total return.
• Almost 75% Weight in Stocks with Dividend Yields above 2%: It’s interesting to see how this dividend yield is achieved—clearly weighting by dividends tilts weight toward stocks with higher yields.
1Source: Bloomberg.
Important Risks Related to this Article
Dividends are not guaranteed, and a company’s future ability to pay dividends may be limited. A company currently paying dividends may cease paying dividends at any time.
Investments focused in Europe are increasing the impact of events and developments associated with the region, which can adversely affect performance.
Investments focusing on certain sectors and/or smaller companies increase their vulnerability to any single economic or regulatory development.