[/caption]I got news from Martin over at Den of the Lion Investor that Deutsche DB-X will be making the STOXX® GLOBAL SELECT DIVIDEND 100 ETF available to SGX investors.
The DJ STOXX® Global Select Dividend 100 Index consists of 100 stocks covering the highest-yielding stocks in the Dow Jones STOXX® Global 1800 Index.
The Index universe is defined as all dividend-paying companies in the Dow Jones STOXX® Global 1800 Index that have a non-negative historical five-year dividend-per-share growth rate and a dividend to earnings per-share ratio of less than or equal to 60% or 80%, depending on the respective region.
For your info, the Global 1800 consist of the biggest stocks in the world (600 in US, 600 in Europe, 600 in Asia). While we are still missing out some of the emerging markets, this ETF for once gives the Singapore investor a dividend exposure to some of the best dividend paying companies in the world.
Lower Payouts and Increasing Dividends the key here
Selection of the components of this ETF is key here. Research have shown that companies that were able to increase their dividend payouts and have low payout ratios tend to outperform in the long run.
Why is that? If all else being equal, a company can only increase its payout from 5 years ago if they are generating good cashflow. Of course there are exceptions to this as they can finance that by taking on debts but in general good cashflow translates to higher profits and higher dividends and higher share price appreciation.
A lower dividend payout ratio means that money is retain for investments and growth. This is much better than your REITs or Utilities that pay out near 100% and whenever they need more money they ask money from you investors again. Read more...[caption id="attachment_2156" align="alignright" width="150" caption="Photo by Tom@HK"][/caption]I got news from Martin over at Den of the Lion Investor that Deutsche DB-X will be making the STOXX® GLOBAL SELECT DIVIDEND 100 ETF available to SGX investors.
The DJ STOXX® Global Select Dividend 100 Index consists of 100 stocks covering the highest-yielding stocks in the Dow Jones STOXX® Global 1800 Index.
The Index universe is defined as all dividend-paying companies in the Dow Jones STOXX® Global 1800 Index that have a non-negative historical five-year dividend-per-share growth rate and a dividend to earnings per-share ratio of less than or equal to 60% or 80%, depending on the respective region.
For your info, the Global 1800 consist of the biggest stocks in the world (600 in US, 600 in Europe, 600 in Asia). While we are still missing out some of the emerging markets, this ETF for once gives the Singapore investor a dividend exposure to some of the best dividend paying companies in the world.
Lower Payouts and Increasing Dividends the key here
Selection of the components of this ETF is key here. Research have shown that companies that were able to increase their dividend payouts and have low payout ratios tend to outperform in the long run.
Why is that? If all else being equal, a company can only increase its payout from 5 years ago if they are generating good cashflow. Of course there are exceptions to this as they can finance that by taking on debts but in general good cashflow translates to higher profits and higher dividends and higher share price appreciation.
A lower dividend payout ratio means that money is retain for investments and growth. This is much better than your REITs or Utilities that pay out near 100% and whenever they need more money they ask money from you investors again. Read more...
[/caption]I got news from Martin over at Den of the Lion Investor that Deutsche DB-X will be making the STOXX® GLOBAL SELECT DIVIDEND 100 ETF available to SGX investors.
The DJ STOXX® Global Select Dividend 100 Index consists of 100 stocks covering the highest-yielding stocks in the Dow Jones STOXX® Global 1800 Index.
The Index universe is defined as all dividend-paying companies in the Dow Jones STOXX® Global 1800 Index that have a non-negative historical five-year dividend-per-share growth rate and a dividend to earnings per-share ratio of less than or equal to 60% or 80%, depending on the respective region.
For your info, the Global 1800 consist of the biggest stocks in the world (600 in US, 600 in Europe, 600 in Asia). While we are still missing out some of the emerging markets, this ETF for once gives the Singapore investor a dividend exposure to some of the best dividend paying companies in the world.
Lower Payouts and Increasing Dividends the key here
Selection of the components of this ETF is key here. Research have shown that companies that were able to increase their dividend payouts and have low payout ratios tend to outperform in the long run.
Why is that? If all else being equal, a company can only increase its payout from 5 years ago if they are generating good cashflow. Of course there are exceptions to this as they can finance that by taking on debts but in general good cashflow translates to higher profits and higher dividends and higher share price appreciation.
A lower dividend payout ratio means that money is retain for investments and growth. This is much better than your REITs or Utilities that pay out near 100% and whenever they need more money they ask money from you investors again. Read more...
