Aug 10, 2017|
John Mooney (DVYE) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Frequent contributor and frequent co host John Mooney joins us now for a little bit of stock talk John good to hear from him. Case Shiller the governor Chuck Berry. What we're doing well we're doing well we're talking about an ETF with you today. And if I am correct. We're talking about the iShares emerging market dividend ETF is that right. Yeah and that's what's different here I used to own EM and that's the kind of go to emerging markets ETF by far the largest one in the world how the indicator of how things are an emerging markets. And what's interesting is emerging markets are the cheapest place to invest. Historically. Been the most expensive this is so very unusual. But the places in the world with the fastest growth. Would actually got the cheapest prices so that's the attractiveness of like yeah I am but what I really like it if you kind of want to hedge that bet a little bit. Which is to get cheaper stocks that are good enough to all paid dividends. Be emerging markets dividend ETF. Is simple DB YE and this is something I personally switched into. It's clearly thinly traded it's only about 350 million dollars in assets so it's small but what I like is shocked. It's twelve times earnings. Three and a half percent dividend which makes it cheaper than the emerging markets and cheaper for the rest of the world. And the dividend more than twice the emerging markets that's pretty appealing. Yesterday it gives you some incumbent you're still involved in some of those higher gross various. Right and yelled one and a half times price to book one time is quite filled the real value oriented once again the one negative on this is it's. Apparently actively traded there's not a whole lot of world. And it's it's not that popular guy like the fact did you get paid a real nice dividend the end. You're getting it cheap price and it does pretty well the first fight to like a quarter of the forms in Taiwan. 13% and China and percent Russia. How closely does this in terms of its overall performance mimic. EM or something along those lines. Great question if you look at the chart they almost that identical. Which is that pushed. You would think that this might not declined as much or declines and maybe not the cause and not increase as much of it increases but that the chart almost matches ET EM exactly. Born elect is why you get like one point 4% only see him get three and a half percent owning this. And intuitively look I'm not an expert on like companies and Portugal. But I know that every company at the 99 my own at least makes enough money to support the dividend. Matt are like dividend Fox's you know the healthy enough that they're making profits. Looking at something like this obviously it is still going to be more risky. In the US but I do wanna spin back to that dividend briefly. That's not doomed to be a qualified dividend correct doesn't get any preferential tax treatment in the US. That's great point to pick it does not because it's. Non US dividend that's why I think it's a really good choice for an irony. Yup yup absolutely that makes a lot of sense there. Because you're diversifying outside the United States and I think it's important for people in this world understands that the US is doing great but we're. Where do synchronized global recovery it may not be rock and roll but we are getting groped around the world. And the best values right now in Pakistan is for a year are in Europe. In the emerging markets in the idea of diversifying outside the United States into these places that have to. Especially case emerging markets growth in the case of Europe. More stability lower prices I think only makes a lot of sense. Are good John thank you for the time today. Our I would take an indictment of he directs the. Yeah OC pretty soon. That is John Moody talking about the iShares emerging market dividend ET after the ticker on that is DB. YE.