Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
In the U.S., it is widely believed that dividend stocks, particularly consistent dividend growers, perform better than dividend offenders and stocks that do not pay dividends during market downturns. Unfortunately, that conventional wisdom has been defied in developing economies as several well-known emerging markets dividend exchange traded funds have lagged benchmarks such as the MSCI Emerging Markets Index over the past year.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
The WisdomTree Emerging Markets High Dividend Fund (NYSE: DEM) is one of the long-suffering emerging markets dividend ETFs. Down 29.5 percent over the past year, DEM currently yields 5.45 percent on a trailing 12-month basis, or more than double the comparable yield on the MSCI Emerging Markets Index.
DEM and rival emerging markets dividend ETFs have been confounded by, among other factors, speculation Russian dividend growth will be stagnant in the face of slumping oil prices and slumping commodities prices that are plaguing Brazil and South Africa. Those two countries are usually important parts of emerging markets dividend ETFs.
However, there is some good news and it comes from a source that could be viewed as surprising: Chinese banks.
“Markit’s dividend forecasting service is expecting the financials which feature in the CSI 300 index to boost their aggregate dividends by over 10.3% in the coming fiscal year to reach an aggregate CNY 319bn. This is over twice the pace of growth seen by Chinese blue chip stocks as the aggregate dividend payments made by the index’s constituents is only forecasted to grow by 5.3% over the same period of time,” said Markit in a new note.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
This is big news for several reasons. First, China is the largest emerging markets dividend payer in dollar terms. Second, the bulk of those payments come courtesy of Chinese banks. As it pertains to DEM, dividend growth from Chinese banks is significant because China is the ETF's second-largest country weight at 14.6 percent and financials are the fund's largest sector weigh at 24.3 percent.
DEM has more than triple the exposure to Russian stocks than is found in the MSCI Emerging Markets Index, a good thing when oil prices are rising, but not so much when the opposite is true. However, DEM has been hampered by a combined overweight to Brazil and South Africa, two markets that have struggled due to sagging currencies and slumping commodities demand.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.