{"id":31866,"date":"2012-08-27T07:22:27","date_gmt":"2012-08-27T11:22:27","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/08\/think-emerging-markets-are-too-risky-try-these\/"},"modified":"2012-08-27T11:36:19","modified_gmt":"2012-08-27T15:36:19","slug":"think-emerging-markets-are-too-risky-try-these","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/08\/27\/think-emerging-markets-are-too-risky-try-these\/","title":{"rendered":"Think Emerging Markets Are Too Risky? Try These\u2026"},"content":{"rendered":"

Article by Investment U<\/a> <\/p>\n

I\u2019m sure you\u2019ve read it before\u2026<\/p>\n

The IMF estimates that by 2014, somewhere in the neighborhood of 60% to 70% of the world’s GDP growth will be coming from emerging markets. These aren\u2019t your father\u2019s emerging markets anymore. EMs have become more economically sound with their own domestic demand and earnings growth.<\/p>\n

I\u2019m here to tell you that if you still have a bias towards the developed world, then the growth and the development of the rest of the world will<\/em> undoubtedly pass you by. But below I\u2019ll show you how to capture some of that growth in a relatively safe way\u2026<\/p>\n

As I and many other writers from Investment U<\/em> have told you over the past few years, there\u2019s no use in dealing with the headache of trying to time the market. It especially doesn\u2019t make sense now with the current unpredictable ebbs and flows of the market.<\/p>\n

Instead, stick with trusted strategies that reduce risk while gaining the best possible return. One of these time-tested strategies, advocated by Investment U\u2019s<\/em> own Marc Lichtenfeld, is investing in quality dividend stocks.<\/p>\n

So without further ado, let\u2019s take a look at dividend-paying equities in emerging markets.<\/p>\n

A \u201cNew World\u201d of Opportunity for Dividends <\/strong><\/h2>\n

As I said earlier, the IMF expects up to 70% of the world\u2019s GDP growth to come from emerging markets. But possibly even more impressive is the fact that about 40% will come from China and India alone.<\/p>\n

And yes, these emerging market stocks have performed well. But what you probably didn\u2019t know is that many companies in the emerging market world have also been increasing their cash payouts.<\/p>\n

In fact, the average dividend yield in emerging market countries is now over 3%. If you look at all of the S&P 500, the average is a little over 2%.<\/p>\n

There\u2019s no reason to believe that this is a passing fad. Companies are now beginning to mature around the world. And after that initial growth stage has passed, it\u2019s time for companies to take their cash and give it to the investor rather than just re-investing it in the company.<\/p>\n

And sometimes, the law can actually be your friend. Some emerging market companies are actually forced<\/em> to pay hefty dividends. Brazilian companies are required by law to pay out at least 25% of their net profits.<\/p>\n

The Easiest Ways to Gain Exposure<\/strong><\/h2>\n

Be aware that many of the better-paying companies won\u2019t be listed on U.S. exchanges, so you\u2019ll probably want to gain exposure (and valuable diversification) by buying a fund. Here are some to get you started:<\/p>\n