With a trailing 12-month dividend yield of nearly 4%, which outpaces its aforementioned rivals, DBEU also offers investors exposure to resurgent European dividend growth. Companies across Europe could begin raising cash payouts as the economic outlook improves, corporations see healthier balance sheets and companies enjoy historically low borrowing conditions from quantitative easing, reports Joel Lewin for the Financial Times.
The U.K. and Switzerland, DBEU’s two largest country weights, are two of the best ex-U.S. developed markets for dividend growth. Plus, DBEU should offers opportunity as Eurozone contagion risk ebbs.
“Despite the situation in Greece, and whether it ultimately ends up staying within the Eurozone or leaving it, contagion fears are more muted today than they were just five years ago for three reasons: an improving macroeconomic picture in other periphery nations, a considerably more robust policy toolkit, and a strengthening conviction in the bond market that what is true for Greece does not necessarily hold for other nations,” said Kittsley.
Tables Courtesy: Deutsche Asset & Wealth Management