Image source: Getty Images
When it comes to high dividend yields, few FTSE stocks come close to beating Ashmore Group’s (LSE:ASHM) current 9.5% payout. This yield’s largely been driven by management maintaining dividends despite its share price tumbling by more than 50% over the last five years.
So if dividends are seemingly here to stay, is this secretly a lucrative opportunity for income investors?
The bull case
Ashmore’s share price weakness since 2020 has been driven predominantly by poor returns within emerging markets. As an investment specialist in this field, performance has suffered greatly as economically weaker countries struggled to handle both the impact of the pandemic and the subsequent macroeconomic headwinds that followed.
Consequently, clients started withdrawing their capital, resulting in significant profit and revenue pressure on the business. However, emerging markets have…
