Eoin Treacy's view

Here is a link to this month’s table.

Heightened geopolitical risk is a thread linking the top three markets in terms of dividend yields this month. Lithuania and Estonia both have land borders with Russia but are also members of the EU and have the Euro as their currency. While Russia might be able to fob off the global community with arguments that the formation of Ukraine was a false proposition and that it has the right to take back its territory, EU members would feel obliged to intervene if the same arguments were used in the Baltics. However this does not obscure the fact the economies of Estonia and Lithuania remain dependent on trade with Russia which is currently under threat due to sanctions. 

Lithuania (P/E 9/53, DY 8/24%) has held a progression of higher reaction lows since 2011 and has returned to test the region of the 200-day MA. A sustained move below 450 would be required to question medium-term scope for continued higher to lateral ranging.  

Estonia (P/E 12.81, DY 4.69) broke below its 200-day MA in January and has held a progression of lower rally highs since. A sustained move above 800 will be required to begin to suggest a return to medium-term demand dominance. 

(Please note: All data quoted above originates in Bloomberg. We realise that some of the data displayed is inaccurate for some indices, particularly where ADRs are included. However, I have endeavoured to remove the most problematic indices. We publish these tables because the data is generally accurate and going forward we will continue to weed-out the less reliable data sets as subscribers highlight them for us. The P/Es quoted by Bloomberg are exclusively based on operating earnings.)