Which sectors pay the highest dividends and are the cheapest globally?

According to a report by Schroder’s based on the MSCI World Value Index, financials have the highest dividend yields as shown below and are the cheapest based on P/E ratio. However many financials especially those in developed Europe are shaky and are struggling. So it is important to be highly selective in this sector.

The table below shows the dividend yields and P/E ratio of various sectors:

Click to enlarge

Data Source: Schroders, Bloomberg as at 6 July 2016. MSCI World Value Index.

Source: Are there any safe haven investments left?, Schroders