Chart Of The Week - Global Dividend Yields
This week: credit risk outlook, growth vs defensive asset valuations, 60/40 portfolio, global dividend yields, expected returns, commodity technicals, alternative assets...
This email gives you a brief overview of what was covered in the latest Weekly Insights report including of course, the Chart Of The Week.
Check out the full archives of the Chart Of The Week for more charts.
Chart of the Week - Dividend Yields Across Global Equities
Global Equity Dividend Yields: This chart (showing dividend yields across the major chunks within global equities) is interesting for a few reasons:
The level of dividend yield across the major country groupings is higher than usual (or at least much higher vs when the market peaked in 2021);
The rest of the world pays higher dividend yields than the USA (albeit part (but not all) of the gap is accounted for by buybacks);
Back when inflation and interest rates were higher (1970’s-80’s), dividend yields were also higher (which begs the question: will dividend yields also need to go up further if we are indeed in a higher for longer scenario?).
Food for thought for both dividend income investors and asset allocators in general (arguably it’s another piece of evidence in favor of global vs US equities).
Key Point: Global dividend yields echo a number of key macro/AA themes.
n.b. EM = Emerging Markets, DM Ex-US = Developed Markets excluding USA.
NEW: Like these charts? Try out our paid service with a 7-day Free Trial
Topics covered in the latest Weekly Insights Report
Aside from the chart above, we looked at several other charts, and took a bite out of some really important macro/asset allocation issues right now:
Commodity Technicals: medium-term outlook for commodity prices.
Market Updte: hedge funds, private equity, and bond yields.
Banks vs Capital Markets: credit risk mispricing developing.
Growth vs Defense Valuations: from one extreme to another.
60/40 Portfolio Valuation: no longer dangerous (but).
Global Equity Expected Returns: global vs USA.
Subscribe now to get instant access to the report so you can check out the details around these themes, as well as gaining access to the full archive of reports.
For more details on the service check out this recent post which highlights:
a. What you Get with the service;
b. the Performance of the service (results of ideas and TAA); and
c. What our Clients say about it.
Thanks for your interest. Feedback and thoughts welcome.
Sincerely,
Callum Thomas
Head of Research and Founder at Topdown Charts
Follow me on Twitter
Connect on LinkedIn