U.S. firms are paying out more of their earnings in dividends to shareholders than investing in R&D or growing their businesses according to a report in the journal today. Though the dividend yield of the S&P 500 has stayed around 2% for many years, the payout ratio has increased in recent years to record levels. …
Continue reading ‘Dividend Payout Ratio of U.S. vs European Stocks’ »
Growth stocks tend to have lower dividend payouts and are known for their growth potential. Unlike dividend stocks which are held for solid, consistent and growing income with some price appreciation over time, growth stocks offer investors to gain from substantial gains as they deploy excess earnings on growing the firm which can be either …
Continue reading ‘Five Growth Stocks To Consider For Potential Investment’ »
Investing in emerging markets involves more risk than investing in developed markets. However over the long-term measured in 5 years or more, emerging equities can reward substantial gains. The chart below shows the return of emerging equities against developed markets and the US market: Click to enlarge Source: Data from Bloomberg as of 7/27/15, calculation …
Continue reading ‘Long-Term Return of Emerging Markets vs Developed Markets: Chart’ »
Investing in foreign stocks via American Depository Receipts (ADRs) involves a few disadvantages. For instance, one has to pay dividend withholding taxes to foreign governments on dividends paid by the foreign company with some exceptions. Countries like the UK , Singapore, etc. do not deduct this tax for US investors and others such as Canada …
Continue reading ‘ADR Fees: What is it and Why it is Important to be Aware of it’ »
Emerging markets used to be a hot destination for investors a few years ago. Nowadays these markets have become more of submerging markets with equities hit hard due to the collapse in commodity prices and other factors. Countries that are major oil exporters such as Brazil, Russia, etc. are suffering with the fall in crude …
Continue reading ‘Is This A Good Time To Invest In Emerging Markets ?’ »