For the first time on record, global dividends topped $1 trillion last year. The number was $1.03 trillion to be precise and plenty of countries and regions got in on the dividend growth act.
Members of the S&P 500 were big contributors to that number, chipping in almost $312 billion in payouts, but dividends spurted higher in other developed markets such as Australia and the U.K. Emerging markets companies contributed $1 of every $7 in global dividends last year. British firms threw in over $102 billion. [The Case for U.K. Dividends]
The Global X SuperDividend ETF (NYSEArca: SDIV) is one way for income investors to get a little bit of everything when it comes to global dividends. SDIV, which tracks the Solactive Global SuperDividend Index, features a trailing 12-month yield of 6.74% and pays its dividend monthly, giving investors a steady income stream.
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.
After a 23.6% weight to the U.S., SDIV allocates over 30% of its combined weight to Australia and the U.K. Australian companies paid $40.3 billion in dividends last year, nearly double the amount paid in 2012. Led by financial services and mining names, Australian dividends are expected to continue growing this year. [Awesome Australian Dividens]
SDIV, which equal weights its 100 holdings, has $848.6 million in assets under management, over $600 million of which came into the ETF last year.
SDIV’s beta against the S&P 500 and the MSCI Emerging Markets Index are 0.99 and 0.87, respectively, according to issuer data. Emerging markets allocations within the ETF are scant with China and Brazil combining for just 3.8% of the fund’s weight. The ETF charges 0.58% per year.
Global X SuperDividend ETF
ETF Trends editorial team contributed to this post.
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.