DEM Offers Double the Yield of VOO With $3.3 Billion in Assets: Is the Distribution Volatility Worth It for 2026?

"The WisdomTree Emerging Markets High Dividend Fund ( NYSEARCA:DEM) offers retirees exposure to high-yielding companies across developing markets with a current yield of 4.87%. With $3.3 billion in assets and an 18-year track record since 2007, DEM generates income by holding dividend-paying equities from emerging markets, primarily concentrated in Chinese financials, Taiwanese technology firms, and energy companies. The fund's 0.63% expense ratio is reasonable for active emerging market exposure, and its diversified portfolio of over 400 holdings means no single position dominates risk."

"DEM's dividend sustainability depends heavily on its largest positions. The top five holdings account for approximately 14% of the portfolio: China Construction Bank, the fund's anchor holding at 4.25%, maintains a 41% payout ratio with a 5.7% dividend yield. Industrial and Commercial Bank of China follows with a 31% payout ratio and similar yield, indicating Chinese financials pay dividends well within earnings capacity."

"MediaTek presents different risk. The Taiwanese chipmaker carries an 81% payout ratio, approaching the threshold where dividend sustainability becomes questionable. While the company maintains a policy of distributing 80-85% of earnings, this leaves minimal room for error if semiconductor demand weakens. Saudi Aramco's payout ratio exceeds 100% at approximately 110%, meaning the energy giant pays more in dividends than it earns. However, Aramco's massive cash flows and strategic importance to Saudi Arabia provide unusual stability despite the elevated ratio."

DEM provides a 4.87% current yield and holds $3.3 billion in assets with an 18-year operating history since 2007. The fund charges a 0.63% expense ratio and holds more than 400 emerging-market dividend-paying equities, limiting single-position dominance. The top five positions represent roughly 14% of the portfolio, creating concentration risk in Chinese financials and large-cap names. Individual payout ratios vary widely: China Construction Bank (41%) and ICBC (31%) show conservative metrics, MediaTek carries an 81% payout, and Saudi Aramco exceeds 100% payout. Distributions have fluctuated markedly, complicating income planning.

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