- Brazilian stocks have begun to outperform the EM benchmark after a four-year period of relative weakness, and forces are aligned for further strength.
- The commodity price boom and high real interest rates suggest that the Brazilian currency should outperform, while the equity dividend yield is almost double the EM average.
- This EWZ's trailing dividend yield is 2.9% but the ETF should gradually raise its dividend in line with the underlying index, whose forward yield is an attractive 4.4%.
For further details see:
EWZ: 3 Reasons Brazil Will Outshine Its Peers