Cheap International Stocks Deliver Surprising June Dividend Bonanza

The Dimensional International Small Cap Value ETF (NYSEARCA:DISV) has been drawing attention for its outperformance in recent months, and one key factor contributing to this success is the significant dividend payouts from its underlying holdings. In June, investors received larger-than-expected checks from these cheap international stocks.

According to data from Dimensional Fund Advisors, the fund’s average dividend yield increased by 25% year-over-year in June, with many of its constituent companies paying out substantial dividends. This trend is particularly notable given the current economic environment, where interest rates have been rising and investors are seeking higher returns on their investments.

The strength of these dividend payouts can be attributed to the fund’s focus on small-cap international companies that trade at a discount to their intrinsic value. These firms often retain more earnings as cash flow rather than distributing it through share buybacks or acquisitions, allowing them to pay out larger dividends to shareholders.

Wall Street analysts are taking note of this trend, with some predicting continued growth in dividend yields for the fund’s underlying holdings. As investors continue to seek higher returns and income-generating investments, the Dimensional International Small Cap Value ETF is poised to remain a compelling option for those looking to capitalize on cheap international stocks.

Source: original report.