Dividend Return Vs. Total Return For Developed Market Country Indexes

Based on MSCI developed markets country and region indexes, New Zealand, Australia and Spain produced 4% or higher annualized dividend yields over rolling 1, 3, 5 and 10 years as of 2012-04-06. Spain, in particular, accomplished that by the severe downturn in stock prices. Australia would not have registered a 4+% return for the 1-year period except for a near 10% price drop. Tiny New Zealand, however, which had dividend yields of high 5% to high 6% range over 1,3, 5 and 10 years, also had generally solid total returns, suffering only a negative 0.4% total return for 5 years. That period, which included 2008, compares favorably with most countries; and they did well for 1, 3 and 10 years. The United States ranked low in the dividend dimension relative to most of the other MSCI indexes. On the total return front, the 5-year period is a focus item, because... Read more