Charting our Focus

 The Importance of High-Quality Global Dividend Opportunities

Global markets can offer investors additional opportunities for diversification¹ as well as dividends² for investors seeking income. In times of inflation, dividends can be an important tool for preserving purchasing power. Finding dividends on a global scale is where market experience and active management converge. 

Investors should consider the benefits that other geographic regions can offer in term of investment opportunities that they might otherwise miss.  For example, Japan has recently experienced a renaissance towards creating shareholder value through actions such as share buy backs, the restructuring of management teams, leveraged buyouts, raising payout rations, and as the chart above indicates - increasing dividend.

Earnings from dividends can be one way to potentially offset the diminished purchasing power from rising inflation. Good portfolio management with a global focus can help investors find profitable and well-managed companies with attractive dividend potential.

The chart above shows dividend yields for three major indices covering developed markets across the globe. 

• The Europe Stoxx 600 Index has returned an average dividend yield of about 3.5% for the past decade³. 
• In contrast, the average dividend yield for stocks in the US S&P 500 was in the 2% range from 2013-2020 before declining during the COVID-19 epidemic. It remains relatively low, at 1.71%⁴.
• The yield for Japan’s Nikkei 225 Index is the most interesting. It rose from about 1.4% in 2013 in a choppy-but-steady fashion, then tanked during the COVID-19 epidemic before returning to over 2.25% in 2023³. 

¹Diversification does not assure a profit or protect against loss.

²Dividends are not guaranteed.

³as of 5/31/23. (date range of 5/31/13-5/31/23.)

⁴Source: Bloomberg, May 31, 2023.

Terms and Indices

Stoxx 600: The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 

Index representing large, mid and small capitalization companies across 17 countries of the European region.

Nikkei 225: The Nikkei-225 Stock Average is a price-weighted average of 225 top-rated Japanese companies listed in the First Section of the 

Tokyo Stock Exchange. 

S&P 500: The S&P 500 broad measure of large-cap US equities and serves as the foundation for a wide range of investment products. 

Indices are unmanaged and their returns assume reinvestment of dividends and do not reflect any fees or expenses. It is not possible to invest directly in an index.

Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of 7/31/2023.

A Word About Risk: Pioneer Global Sustainable Equity Fund

The market prices of securities may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory conditions, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues or adverse investor sentiment.Investing in foreign and/or emerging markets securities involves risks relating to interest rates, currency exchange rates, economic, and political conditions.The Fund generally excludes corporate issuers that do not meet or exceed minimum ESG standards. Excluding specific issuers limits the universe of investments available to the Fund, which may mean forgoing some investment opportunities available to funds without similar ESG standards.The Fund is subject to currency risk, meaning that the Fund could experience losses based on changes in the exchange rate between non-US currencies and the US dollar.The market price of securities may fluctuate when interest rates change. When interest rates rise, the prices of fixed income securities in the Fund will generally fall. Conversely, when interest rates fall, the prices of fixed income securities in the Fund will generally rise.The Fund may use derivatives, which may have a potentially large impact on Fund performance.

A Word About Risk: Pioneer International Equity Fund

The market prices of securities may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory conditions, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues or adverse investor sentiment. Investing in foreign and/or emerging markets securities involves risks relating to interest rates, currency exchange rates, economic, and political conditions. To the extent the Fund invests in issuers located within specific countries or regions, the Fund may be particularly affected by adverse markets, rates, and events, which may occur in those countries and regions. The Fund is subject to currency risk, meaning that the Fund could experience losses based on changes in the exchange rate between non-US currencies and the US dollar. The market price of securities may fluctuate when interest rates change. When interest rates rise, the prices of fixed income securities in the Fund will generally fall. Conversely, when interest rates fall, the prices of fixed income securities in the Fund will generally rise.

The views expressed regarding market and economic trends are those of Amundi Asset Management US, Inc. ("Amundi US"), and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any portfolio.

Investing in mutual funds involves significant risks. For complete information on the specific risks associated with each fund, please see the appropriate fund’s prospectus or fact sheet, available on our  literature page.

Individuals are encouraged to seek advice from their financial, legal, tax and other appropriate professionals before making any investment or financial decisions or purchasing any financial, securities or investment-related product or service, including any product or service described in these materials. Amundi US does not provide investment advice or investment recommendations.

Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our  literature section.

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