Dividend stock exchange traded funds have outpaced other investment styles and could remain a strong strategy ahead.
Over the past year, the WisdomTree MidCap Dividend Fund (NYSEArca: DON) increased 24.0%, Vanguard High Dividend Yield ETF (NYSEArca: VYM) gained 20.1%, PowerShares Dividend Achievers Portfolio (NYSEArca: PFM) rose 18.8% and iShares Core High Dividend ETF (NYSEArca: HDV) advanced 20.6%.
DON has a 2.43% 12-month yield. VYM has a 2.86% 12-month yield. PFM has a 2.0% 12-month yield. HDV has a 3.27% 12-month yield.
“Over the past 12 months, dividend yield as a style has outperformed in all markets apart from Japan,” Credit Suisse analysts led by Andrew Garthwaite said, according to CNBC. “In the euro area, U.K. and U.S., dividend indices outperformed their wider markets by 3.8 percent, 5.6 percent and 3.1 percent, respectively.”
Looking at a Europe dividend stock ETF, the First Trust STOXX European Select Dividend Index Fund (NYSEArca: FDD) rose 6.4% over the past year while the iShares MSCI EMU ETF (NYSEArca: EZU) dipped 0.2%.
FDD has a 4.23% 12-month yield.