Investing in Asia for Dividend Income

by Jesper Madsen, CFA and Charles Rotblut, CFA

Jesper Madsen manages the Matthews Asia Dividend Fund MAPIX and the Matthews China Dividend Fund MCDFX. I spoke with him in late July about dividend investing in Asia.

—Charles Rotblut

Charles Rotblut (CR): In your Asian funds, what guides your allocation decisions?

...To continue reading this article you must be registered with AAII.

Gain exclusive access to this article and all of the member benefits and investment education AAII offers.
JOIN TODAY for just $29.
Log in
Already registered with AAII? Login to read the rest of this article.

Register for FREE
to read this article and receive access to future AAII.com articles.
  
Jesper Madsen, CFA CFA, manages the Matthews Asia Dividend Fund (MAPIX) and the Matthews China Dividend Fund (MCDFX).
Charles Rotblut, CFA is a vice president at AAII and editor of the AAII Journal. Follow him on Twitter at twitter.com/charlesrotblut.


Discussion

Robert from Illinois posted over 2 years ago:

The dividend payout of MAPIX was $.32+ in 2008, and then went up to $.47 in 2009, but then decreased in 2910 to $.45.4, probably because of currency translations. So this type of Fund effort is still very complex for individuals trying to build a dividend growth portfolio. See "Dividend Growth Investing" for a portfolio selection process that is global, and very low risk.


Rick from New York posted over 2 years ago:

I am considering adding this fund to my portfolio in an IRA. Now I have a concern about the foreign taxes applied to the dividends. Is this fund better for a taxable or non taxable account? Comments would be appreciated.


Charles from Illinois posted over 2 years ago:

Rick - You can only get a refund on foreign taxes if the fund is held in a taxable account. If you hold foreign investments in a tax-deferred account and are charged foreign taxes, you lose the amount. - Charles Rotblut


Rick from New York posted over 2 years ago:

thank you for your comment Charles


Barry from Alabama posted over 2 years ago:

I purchased one of the dividend funds recently after much study . This will be a core long term holding.


Micheal from Georgia posted over 2 years ago:

Our beloved USA is broke.... $15 trillion in Debt and climbing.....Investing outside of the USA is wise at this time and the next few decades.


George from Pennsylvania posted about 1 year ago:

As in the US: a diversified strategy for Asia investments is safer than a non-diversified one.

MatthewsAsia recommends diversifying your Asian investments the same way that you do in the US: some in growth, some in value, some in large cap, some in small...

Dividend and interest paying funds can further diversify your Asian portfolio -- but few investors think of that aspect in the same breath as Asia.

For most people, Asia = Export oriented Growth and nothing more. Jesper Madsen's dividend oriented funds offer a very nice counterbalance. I have about 10% of my total portfolio in his funds.


Dawn Wride from Ohio posted about 1 month ago:

There are companies in the U.S. who are pretty sound paying dividends in the 6% to 12% range. Do you include them in your total portfolio?


Charles Rotblut from Illinois posted about 1 month ago:

Dawn,

Are you referring to AAII Dividend Investing?

The answer is no because we are not finding financially sound companies with both free cash flow and a record of raising their dividends with those levels of yields. We also do hold REITs or MLPs because of their different tax treatment.

-Charles


You need to log in as a registered AAII user before commenting.
Create an account

Log In