4% Income from Emerging Market Stocks

There are more than 1,000 companies in emerging markets paying out a dividend yield of more than 2% and 508 of them are paying yields greater than 4%

Karen Kwok 28 September, 2016 | 4:51PM

Emerging market stocks have demonstrated ability and willingness to pay dividends consistently despite volatile times in recent years, according to a top-rated investor.

At a conference in London chaired by the industry body the Association of Investment Companies this week Omar Negyal, from JPMorgan, said income investors should consider emerging markets.

“Many years ago you would not be possible to look at this asset class for income. But they are suitable for income now, with sustainable pay-out ratios. Emerging market companies on average have had dividend pay-out ratios of 30% to 35% for many years now,” says Negyal, manager of the Bronze Rated JP Morgan Global Emerging Markets Income trust (JEMI).

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
JPMorgan Global Emerg Mkts Inc Ord94.00 GBX-4.67
Templeton Emerging Mkts Invmt Tr TEMIT647.00 GBX-0.46

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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