More emerging market companies offering dividends on investments, analyst claims

Wed, 21 Feb 2007

Companies based in emerging markets are increasingly recognising the value of dividends, it has been claimed, which could be good news for international investments.

According to investments specialist Aberdeen Asset Management, businesses in emerging markets have traditionally steered clear of giving dividends to investors in favour of concentrating upon developing the firm.

However, it is suggested that this attitude is changing and companies are now directly distributing income in varying degrees as they appreciate the importance of engendering shareholder loyalty.

Added to the possibility of capital growth, this dividend potential means that international investments may now be a more attractive proposition than ever, it has been proposed by investments trust Murray International, which operates on behalf on behalf of the financial services group.

"Thanks to superior dividend growth, the outlook for income from top emerging market companies in particular looks encouraging," commented Bruce Stout, managing of Murray International Trust.

Earlier this week, Shauna Bevan, collectives analyst at investments advisory specialist Charles Stanley, said that the outlook for returns on Chinese investments looked positive.

"We believe China will continue to perform well relative to other regions," she asserted.

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