These Dividend ETFs are Globetrotters
September 14th, 2011 at 3:12pm by Tom Lydon
Investors with a thirst for yield may want to consider dividend exchange traded funds that seek to diversify further by investing in global stock indexes.
Powershares International Dividend Achievers (NYSEArca: PID),WisdomTree DEFA (NYSEArca: DWM), WisdomTree International LargeCap Dividend (NYSEArca: DOL) and SPDR S&P International Dividend (NYSEArca: DWX) are among the ETFs in this category.
Don Dion for TheStreet recently profiled Powershares International Dividend Achievers.
According to Morningstar analyst Michael Rawson, PID is a suitable holding for “yield-oriented investors who want the income stream from high-dividend-paying stocks, who want the diversification benefits from international stocks, and who are comfortable with the higher risk that this strategy may entail.”
The fund holds a larger weighting in the U.K. and Canada, followed by the U.S., Mexico, Israel and Switzerland. Of the top ten country allocations, Spain is the largest Europe exposure at 3.85% for investors nervous over the Eurozone debt crisis.
The ETF’s global exposure is designed to provide diversification. Additionally, the fund holds a large weighting in the defensive sectors, with over half of PID’s overall holdings in consumer staples, healthcare, telecoms and utilities. [Dividend ETFs Set to Benefit from Higher Payouts]
The fund has a 12-month yield of 3.82%.
PowerShares International Dividend Achievers
For more information on income paying ETFs, visit our divided ETF category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.