Emerging Market Equities Offer Cheap Source of Income

Dividend yields across emerging markets are reaching levels that will excite income investors, as the MSCI emerging markets index now yields more than 3%

J.P. Morgan Asset Management 15 March, 2016 | 4:49PM
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Morningstar's "Perspectives" series features investment insights from third-party contributors. Here, Omar Negyal, Fund Manager, JP Morgan Global Emerging Markets Income Trust discusses the dividend prospects across emerging markets. 

Emerging markets continue to raise countless concerns for international investors, such as the China-led slowdown, which included a collapse in many commodity prices, weakness in emerging markets currencies and disappointing earnings. But these fears have also contributed to very cheap valuations: at 1.2 times price-to-book ratio on the MSCI emerging markets index, emerging markets prices are reaching near crisis territory, a level at which long-term investors have historically been rewarded for investing.

Cheap has gotten cheaper, yet we retain conviction and add to high quality names 

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About Author

J.P. Morgan Asset Management  is the investment arm of JPMorgan Chase & Co. and it is one of the largest active asset managers in the world.

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