Emerging markets dividend growth has outpaced developed world payout growth over the past decade and market observers expect that trend to continue, but some advisors and investors gloss over emerging markets dividend exchange traded funds. However, that growth came under pressure last year as commodities prices slumped.
When share prices tumbled for emerging markets energy and materials firms, some have slashed dividends due to weakening balance sheets. Additionally, some major emerging markets banks are under pressure, indicating that rising dividends from that group may be hard to come by. Those scenarios mean investors need to place a premium on locating reliable emerging markets dividend growth.
Over the past few months, foreign investment flows into emerging market stocks surged, despite any notable changes to the growth, dividends and corporate earnings in the developing economies.
Currently DVY’s “chart is a textbook example of how active traders would expect the price to behavior near this long-term indicator. Notice how the price provided support on each attempted pullback following the breakout in April 2016. Traders would expect this type of support to continue and will likely set their stop-loss orders below $33.63 in the case of a shift in sentiment,” according to Investopedia.
For more information on dividend stocks, visit our dividend ETFs category.
