THE WisdomTree BLOG
Ask the market what fate awaits stocks with high dividends and the answer often lies in the outlook for interest rates. When bond yields rise, the incentive to own stocks that offer higher dividends wanes, and vice versa. But with time, the concept of companies that pay dividends pays off.
We frequently analyze purchasing power parity (PPP), which says that fairly valued exchange rates should cause similar items to have the same price no matter where in the world they are purchased.