DWX: International Dividend Stocks Are Modestly Undervalued, Cyclically Unattractive

Hedge Insider
1.71K Followers

Summary

  • DWX invests in higher-yielding dividend stocks outside the United States.
  • The fund is probably undervalued and offers a strong potential IRR.
  • However, the fund's long-term earnings growth prospects are low, and I see no upside on valuation specifically.
  • I also think that the fund is not well positioned in the current business and investment cycle.
  • Therefore, in summary, I would take a neutral stance on DWX at this point in time.

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We Are

SPDR S&P International Dividend ETF (NYSEARCA:DWX) is an exchange-traded fund that invests in high-yield dividend stocks: the fund invests in "the 100 highest yielding international common stocks that have passed certain sustainability and earnings growth screens". Single countries and

This article was written by

1.71K Followers
Providing commentary and analysis, principally focused on global macro, foreign exchange, and equities as an asset class. Primary interests include equity investing from an international perspective, and FX fair values.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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