Looking for equity income? Think globally
July 28, 2012
In today’s low interest rate environment, global equities may offer an alternative for investors looking to add greater income potential to their portfolios.
Is your portfolio positioned to benefit from global equities?
Investors interested in generating income from the equity portion of their portfolios should consider looking beyond the United States. Around the world, some dividend-paying stocks have been offering yields much higher than those of U.S. equities.
Average equity dividend yields by country (as of April 2012)
Source: MSCI, April 2012. Most recent data available.
U.S. dividend yields have not kept pace recently with those in other countries. Since average dividend yields fluctuate with stock prices, dividend-seeking investors may want to cast a wide net. International equity exposure, if appropriate, may help improve your portfolio’s long-term income-producing potential.
To learn more about the potential benefits, as well as the risks of global stocks, and to determine whether they may be suitable for you, contact your financial advisor today.
Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and other information can be found in the Fund’s prospectus and its summary prospectus, which may be obtained by visiting our fund literature page or calling 800 523-1918. Investors should read the prospectus and the summary prospectus carefully before investing.
IMPORTANT RISK CONSIDERATIONS
Investing involves risk, including the possible loss of principal.
International investments entail risks not ordinarily associated with U.S. investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.
Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.