Juice Emerging Markets Income With This ETF

Among the ETFs offering exposure to emerging markets dividend payers, the WisdomTree Emerging Markets Equity Income Fund (NYSEArca: DEM) is one of the more venerable names.

Dividends provide an objective measure of a company’s health and profitability – one that cannot be affected by accounting methods or government decisions. And while the emerging markets may not be the first place investors look when seeking income, the income potential with this asset class is significant as many traditional emerging markets benchmarks are chock full of dividend payers.

“Companies within certain foreign markets are known to distribute dividends very sporadically, and this fund is no different,” reports ETF Daily News. “In the recent past, quarterly distributions have been as high as over $1 per share and as little as $0.27 per share. Investors won’t want to turn to this fund for regular income, but its trailing 12-month dividend yield has been consistently north of 3%. That’s a nice return for investors as they ride out some of the riskiness that these markets often experience.”

As many income-minded investors turn to alternative avenues in search for yields, international markets have become a popular destination, but one should be mindful of potential currency risks associated with overseas exposure.