Our Global Macro Dashboard highlights the states of 23 major global economies. Below we show a comparison between each of these 23 countries’ P/E ratio and dividend yields. Russia is a standout at the extremes in regards to both measures. Russia has the lowest valuation among all of these countries at 6.4x trailing P/E, but at the same time, it boasts a substantially higher dividend yield of 5.7% (of course, these are related). The next highest dividend yield is over 1% lower with Singapore’s 4.6%. India, on the other hand, is basically the opposite. India has seen explosive growth (8.2% YoY GDP), and it is showing through the second highest valuation at 22.9x. The dividend yield lags behind all other countries at a mere 1.31%. The United States is in a similar boat to India with high valuations, but small dividends compared to the rest of the world.
It is worth noting that Russia’s P/E has been trending downwards in recent years. Additionally, even though the current dividend yield is high, it was briefly much higher back in 2014 & 2015.
India has a similar trend with its dividend yields. Up until about 2015, it too had a much greater dividend yield which fell over the past few years, but it has seen a recovery.