Global map showing equity dividend yields for select countries and regions as of December 2023. Global: 2.0%, Developed market ex-U.S.: 3.1%, Emerging market: 2.9%, U.S. 1.4%, Canada 3.2%, Emerging Americas 5.8%, Emerging Asia 2.5%, Emerging Europe 3.6%, South Africa 3.8%, Developed Europe 3.2%, Developed Asia Pacific 2.7%, Japan 2.2%, Australia 4.1%.
Risks
Risk considerations
Equity securities are subject to market risk which means their value may fluctuate in response to general economic and market conditions and the perception of individual issuers. Investments in equity securities are generally more volatile than other types of securities. Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging markets.
Definitions
Index definitions
MSCI Canada Index is a free-float‐adjusted market-capitalization-weighted index that is designed to measure the equity market performance of Canada.MSCI USA Index is designed to measure the performance of the large and mid cap segments of the U.S. market. With 628 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in the U.S.
MSCI EM Latin America Index captures large and mid cap representation across 6 Emerging Markets countries in Latin America. With 108 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
MSCI Europe Index captures large and mid cap representation across 15 Developed Markets (DM) countries in Europe. With 438 constituents, the index covers approximately 85% of the free float-adjusted market capitalization across the European Developed Markets equity universe.
MSCI EM Europe Index captures large and mid cap representation across 6 Emerging Markets countries in Europe. With 72 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
MSCI EM Asia Index captures large and mid cap representation across 9 Emerging Markets countries in Asia. With 912 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
MSCI Japan Index is designed to measure the performance of the large and mid cap segments of the Japanese market. With 323 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Japan.
MSCI Asia Pacific Index captures large and mid cap representation across 5 Developed Markets countries and 9 Emerging Markets. countries in the Asia Pacific region. With 1,335 constituents, the index covers approximately 85% of the free float-adjusted market. capitalization in each country.
MSCI Australia Index is designed to measure the performance of the large and mid cap segments of the Australia market. With 68 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in Australia.
MSCI South Africa Index is designed to measure the performance of the large and mid cap segments of the South African market. With 46 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in South Africa.
MSCI All Country World Index (ACWI) is a free-float-adjusted market-capitalization-weighted index that is designed to measure the equity market performance of 23 developed and 23 emerging markets.
MSCI World ex USA Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 22 developed markets excluding the United States.
MSCI Emerging Markets (EM) Index is a free-float-adjusted market-capitalization-weighted index designed to measure equity market performance of emerging markets.
Sources: Morgan Stanley Capital International (MSCI) and Wells Fargo Investment Institute, as of December 31, 2023. Yields represent past performance and fluctuate with market conditions. Current yields may be higher or lower than those quoted. Past performance is no guarantee of future results. Canada: MSCI Canada Index, U.S.: MSCI U.S. Index, Emerging Americas: MSCI Emerging Markets (EM) Latin America Index, Developed Europe: MSCI Europe Index, Emerging Europe: MSCI EM Europe Index, Emerging Asia: MSCI EM Asia Index; Japan: MSCI Japan Index, Developed Asia Pacific: MSCI Asia Pacific, Australia: MSCI Australia Index, South Africa: MSCI South Africa Index, Global: MSCI ACWI Index, Developed Markets: MSCI World ex USA Index, and Emerging Markets: MSCI Emerging Markets. An index is unmanaged and not available for direct investment. See “Index Definitions and Asset Class Risk Disclosures” link above for index definitions.
MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.
Key Takeaways
- We view dividend yields in many regions outside of the U.S. as attractive.
- Dividends remain an important source of income for investors.