Income Ideas From Emerging Markets (Institutional Investor)
Richard Titherington, the chief investment officer and head of the emerging markets equity team at J.P.Morgan Asset Management in London, has an article in Institutional Investor about where to find income opportunities in emerging markets. His most important and specific suggestions were:
Taiwan offers a number of companies that are achieving some growth – a difficult thing to do at this time; primarily in the technology and semiconductor space – and that want to pay decent dividends to shareholders. Turkey and Saudi Arabia look interesting from an income perspective, and South Africa is a good example of where to access the dividend power in individual stocks. The economic outlook might be average, but a primary attraction of South African companies is their commitment to returning capital to shareholders in the form of dividends.
The key to picking a company in an emerging market in which to invest is to find a combination of cheap currency valuations and strong dividend yields. Russian materials company Norilsk Nickel (OTCMKTS: NILSY) is a good example. It’s the world’s largest and lowest-cost nickel producer globally with a large reserve base. It generates revenue in U.S. dollars, which helps mitigate the direct impact of the ruble’s weakness. And the company is meeting its dividend targets.
To read the whole article, The Income Bright Spots in Emerging Markets, go to the website of Institutional Investor. In addition, check out our ADR pages for Taiwan here, Turkey here and South Africa here.
- New Fragile Five Facing a Forex Crisis: Argentina, Brazil, South Africa, Ukraine & Venezuela (Institutional Investor)
- Key Findings: Credit Suisse Emerging Markets Consumer Survey
- Election Results in Some Fragile Five Emerging Markets Calm Investors (Reuters)
- Emerging Markets Election Timetable 2014 (Aberdeen)
- 2017 Global Retail Development Index (ATKearney)
- Asia and Emerging Markets Had the Worst Dividend Growth Rates for 1Q2014 (FE Trustnet)
- The 15 Most Miserable Emerging Market Economies (Bloomberg)
- 2014 BCG Local Dynamos: 50 Emerging Market Consumer Companies to Watch (BCG)
- Naspers’ Tencent Stake Drives the MSCI South Africa Index’s Returns (KraneShares)
- “Fragile Five” Emerging Markets No Longer That “Fragile” (AP)