- After the recent selloff in Brazilian stocks, the iShares MSCI Brazil ETF has seen its dividend yield rise back up to 6.8%, while the underlying index now yields 9.7%.
- The 9.7% dividend yield on the MSCI Brazil is largely the result of two major stocks - Vale and Petrobras - which trade at extremely cheap valuations.
- Recent weakness in the BRL has undermined the EWZ but a strong terms of trade position and high real bond yields suggest the currency is well supported.
- While uncertainty is rising ahead of the October general election, particularly with Brazilian President Jair Bolsonaro looking unlikely to accept any defeat, the risk-reward outlook remains highly favorable.
For further details see:
EWZ: Huge Dividend Yield Is Worth The Risk