Seeking Alpha

With U.S. small caps "picked over," some managers are looking overseas for ideas. International...

With U.S. small caps "picked over," some managers are looking overseas for ideas. International valuations are at 13X earnings and dividend yields of 3% vs. domestic at 15X and 2%, according to Mark Bogar, whose firm is allocating 57% of it small cap exposure to foreign holdings, a big jump from a year ago.
Comments (1)
  • keu4bike
    , contributor
    Comments (200) | Send Message
     
    TAN was listed as paying 7.8% on Fidelity this morning. If TAN is so bad, where is the money to pay that 7.8% dividend coming from?

     

    I'm assuming that the struggling companies aren't paying dividends. That means somebody else is paying pretty well for the ETF to come out at 7.8%. Where is the money coming from from to pay that high a dividend?

     

    Should I be putting the list of TAN's holdings through some sort of quality screen and buying the top half of the list instead of buying the ETF?
    7 Jan 2013, 02:38 PM Reply Like
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