Investors’ search for yield has taken them across borders to dividend-themed exchange traded funds that target international stocks.

Non-U.S. companies that are paying dividends can help investors gain more than the 2% that the S&P 500 is yielding, reports Matthew Andrejczak for MarketWatch.

International stock ETFs that have a dividend yield can generate income and help spread out the risk of single-stock investing. They can also diversify currency exposure and give investors a chance to profit from a weaker U.S. dollar, according to the report.

International dividend ETFs have taken a hit along with most equities funds during the recent market pullback. [Emerging Market ETFs for Yield]

“In this kind of choppy market, dividends are a huge pillar of support for a diversified portfolio,” said Alec Young, international equity strategist at Standard & Poor’s Equity Research, in the article.

The overall appeal of buying a dividend stock is that it can help cushion any decline in stock price and gives the chance for capital appreciation with a steady income stream. [How to Easily Find High Yielding ETFs]

One example of an international dividend ETF is First Trust STOXX European Select Dividend Fund (NYSEArca:FDD), which yields 5% and covers 30 companies in Europe.

Other broad-based international dividend ETFs:

  • iShares Dow Jones International Select Dividend Index (NYSEArca: IDV) yields 4.8%; Holds 103 companies.
  • SPDR S&P International Dividend (NYSEArca: DWX) yields 5.6%; gives exposure to 100 of the highest performing dividend yielding common stocks.
  • WisdomTree Dividend ex-Financials Fund (NYSEArca: DOO) yields 5.2%; selects the 10 highest dividend yielding companies within each sector; weights heavily in telecom and consumer staples.

iShares Dow Jones International Select Dividend Index

Tisha Guerrero contributed to this article.

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