Enjoy higher dividends from EU SmallCaps

Over 2 years ago, I recommended to buy Japanese stocks, especially those small caps given the new QE programs engineered by Abe. Well, it has paid off very well as the JP stocks have broken out through its 15 years downward trend recently. Those who bought DFJ have enjoyed even more gains from capital gains plus high dividends.

Now you should consider the same strategy for the EU stocks. Since Draghi opened the spigot of QEs in EU, the EU stocks have notably marched high. There will be much more gain to come as long as the QE momentum is in place. You may play with this trend via FEZ or HEDJ but you can also consider to follow the path as for the JP stocks by buying DFE,  WisdomTree Europe SmallCap Dividend ETF. You see, when the trend is up, you generally get more from small caps and dividend paying stocks are doing even better in general. The chart below can demonstrate this point by comparing DFE vs FEZ. DFE (in red) has more than doubled the return of FEZ in the past 5 years.