PID’s international health care holdings (the sector is 11.4% of the ETF’s weight) also represent an important drive of the fund’s yield. Consider this: PID’s top-three holdings from that sector are GlaxoSmithKline (NYSE: GSK), Sanofi (NYSE: SNY) and Novartis (NYSE: NVS). The average dividend yield on those stocks is 4% compared to an average yield of 3.17% for Johnson & Johnson (NYSE: JNJ), Pfizer (NYSE: PFE) and Merck (NYSE: MRK).
Up 3.2% since we profiled the ETF in late May, PID is up 8.3% year-to-date and after touching another 52-week high Monday, the fund finds itself within shouting distance of $20. PID has not closed above that level since May 2008.
PID’s two largest emerging markets exposures are China and Russia. China is the largest emerging markets dividend payer in dollar terms while Russia is one of the fastest-growing developing world dividend destinations because of government policy that is actively attempting to force cash-rich companies there to pay bigger dividends.
Some investors are taking note of the advantages of ex-U.S. developed market dividend stocks and PID. The ETF climbed more than 3% last month while adding $60.6 million in new assets, a number surpassed by only two other PowerShares ETFs — the PowerShares QQQ (NasdaqGM: QQQ) and the PowerShares FTSE RAFI US 1000 Portfolio (NYSEArca: PRF), according to issuer data.
PowerShares International Dividend Achievers Portfolio
Tom Lydon’s clients own shares of QQQ.