The phrase “dividend diva” may be overused when describing stocks and exchange trade funds, but the Global X SuperDividend ETF (NYSEArca: SDIV) lays legitimate claim to diva status.
SDIV, which turns five in June, tracks the Solactive Global SuperDividend Index and has $731 million in assets under management. The ETF’s underlying index provides exposure to 100 equal weighted companies that are among the highest dividend yielding stocks around the globe. Additionally, SDIV pays a monthly dividend.
The advantage of SDIV’s monthly dividend cannot be understated, particularly because many foreign companies only pay dividends once or twice per year. “Compound interest is a powerful force. The more you compound your money over time, you more you will end up with at the end. So, it makes sense to invest in a stock or ETF which pays out its dividend monthly, as opposed to another investment which pays quarterly, semi-annually or annually,” writes Steve Nicastro on Seeking Alpha.
U.S. stocks account for 30.5% of SDIV’s weight. After that, the ETF’s international dividend credibility is enhance via a combined weight of over 28% to U.K. and Australian stocks. Among ex-U.S. developed markets, the U.K. and Australia are two of the most reliable dividend destinations.