Treasure Trove of International Funds Offers High-Dividend Yields
By: Ned Piplovic
While investors’ attention has been on the post-Nov. 8 election’s rally in U.S. markets, opportunities to earn quick dividend income also are available internationally.
A number of dividend-paying foreign stocks offer yields of at least 8.5%. Here are five global market funds that do so and have ex-dividend dates in late December.
Aberdeen Australia Equity Fund, Inc. (AMEX:IAF)
The Aberdeen Australia Equity Fund, Inc started as The First Australia Fund, Inc. more than 30 years ago. It is a closed ended fund that invests in Australian equity markets.
The fund has been paying dividends since 1990. The quarterly dividend is currently $0.16, or $0.64 annually. Current dividend yield is 11.33%, which is slightly lower than the trailing 12-month yield of 11.5% and the 13.1% five-year average yield.
Its share price was $5.65 at the close of trading on December 14, 2016. That is 21.5% higher than the 52-week low on January 20, 2016, and only 7.1% lower than the 52-week high from August.
With the ex-dividend date on December 28, 2016, there is just enough time to capitalize on this opportunity for a year-end cash influx into your portfolio.
Morgan Stanley Emerging Markets Domestic Debt Fund Inc (NYSE:EDD)
The Morgan Stanley Emerging Markets Domestic Debt Fund is a closed-end fixed income mutual fund. The fund’s target investments are emerging markets government bonds denominated in local currencies. The fund has been paying dividends since its inception in 2007.
Its current annual dividend is $0.74, which translates to a 9.33% current dividend yield. This yield is only slightly below the 12-month and five-year averages of 10.1% and 10.8% respectively. The dividend growth rate is 1.25% over the last three years.
On Dec. 14, its share price closed at $7.36. While the share price has pulled back 13.5% from the 52-week high in August 2016, it is 22.7% higher than the 52-week low in January.
Since the ex-dividend date is December 21, 2016, you should not wait if you wish to take advantage of this opportunity.
First Trust / Aberdeen Emerging Opportunity Fund (NYSE:FEO)
The First Trust / Aberdeen Emerging Opportunity Fund invests in fixed income and equity markets in emerging countries. Fixed income components of the fund are corporate bonds, asset-backed securities, credit default swaps, government debt securities, credit-linked notes and non-investment grade securities.
The upcoming ex-dividend date is December 22, 2016. The fund will pay a $0.35 quarterly dividend at the end of December. The $1.40 annual dividend yields 9.95%, which is close to the 10% trailing 12-month average and 15.7% higher than the 8.6% five-year yield average.
Its share price was $14.07 on December 14, 2016. That is 14.4% lower than the 52-week high from September and 23% higher than the Jan. 16, 2016 low.
New Ireland Fund, Inc. (The) (NYSE:IRL)
The New Ireland Fund was launched in 1989 by Bank of Ireland Asset Management (U.S.) Limited. The fund targets public equity and fixed income investments in Ireland.
The quarterly dividend of $0.2607 is scheduled to be paid on December 30, 2016. The ex-dividend date is December 21, 2016. The annual dividend payout of $1.18 for 2016 converts to a 9.72% dividend yield.
Its dividend yield is in line with the trailing 12-month average of 9.7% and significantly higher than the 1.1%. average over the last five years. The five-year average is low because from 2011 to 2014, dividend payouts were extremely small. Total dividend payout for those three years combined was $0.676.
Its share price fluctuated between $10.96 and $15.14 over the last 52 weeks. The high price happened in December 2015 and the low occurred on June 27, 2016. On December 14, 2016, its share price closed at $12.14 — 10.8% higher than the June low but still down 19.8% from the price high one year ago.
Aberdeen Asia-Pacific Income Fund, Inc. (AMEX:FAX)
The Aberdeen Asia-Pacific Income Fund invests primarily in fixed income — debt securities issued by banks, governmental entities, companies, and other entities — in Asia, Australia, and New Zeeland.
Next payout for the $0.035 monthly dividend is scheduled for Jan. 11, 2017, with the ex-dividend date on Dec.28, 2016. The dividend yields 8.64% on an annual basis. Since 2009 the fund paid the same annual dividend of $0.42 every year.
On Dec. 14, 2016, share price was $4.86. This is approximately in the middle of the $4.22 to $5.55 range over the last 52 weeks. The price is 12.4% lower than the 52-week high on Aug. 31, 2016. and 15.2% higher than the Jan. 20, 2016 price low.
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Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.