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FTSE 100’s Dividend Edge: A Rare Opportunity For U.S. Income Investors

2025-08-12 14:40:30

FTSE 100’s Dividend Edge: A Rare Opportunity For U.S. Income Investors

Main Idea

The FTSE 100 offers a rare dividend opportunity for U.S. income investors, with its higher dividend yield compared to the Dow Jones, despite the Dow's better performance over the past decade.

Key Points

1. The Dow Jones has outperformed the FTSE 100 by 100% over the last 10 years, compounding at roughly 7% compared to the FTSE's minimal growth.

2. The FTSE 100's dividend yield is roughly double that of the Dow Jones, presenting a potential value for income-focused investors.

3. For U.S. investors, the iShare MSCI UK ETF offers a 3.8% dividend yield, while the Core FTSE 100 Tracker is an option for British investors.

4. The FTSE 100 can serve as a dollar hedge, providing diversification benefits despite its slower growth compared to U.S. indices like the Dow.

Description

In the last 10 years, the Dow has outperformed the U.K. index by 100%. In a nutshell, the Dow has compounded by roughly 7% while the FTSE hasn’t compounded much at all.

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