“This dividend tax circumstance reinforces the case for being an active, global dividend investor,” Manasseh wrote.

Since U.S.-listed dividend stocks are primarily populated with U.S. investors, these securities will be the ones most at risk to portfolio repositioning ahead of the tax hikes. On the other hand, international dividend stock shareholders are unaffected by the U.S. tax changes and international offerings come with attractive yields.

Additionally, investors may also find opportunities in high-quality dividends if the market over-reacts and dumps dividend stocks entirely.

International dividend ETFs include:

  • WisdomTree International LargeCap Dividend Fund (NYSEArca: DOL): 3.59% yield
  • WisdomTree International Dividend ex-Financials Fund (NYSEArca: DOO): 4.66% yield
  • SPDR S&P International Dividend ETF (NYSEArca: DWX): 6.66% yield
  • iShares Dow Jones International Select Dividend Index Fund (NYSEArca: IDV): 5.19% yield

For more information on dividends, visit our dividend ETFs category.

Max Chen contributed to this article.