ProShares launched a new Europe dividend exchange traded fund, expanding on its line of dividend growing stock strategies that help investors capture steady and reliable income streams.
According to a press release, the ProShares MSCI Europe Dividend Growers ETF (NYSEArca: EUDV) began trading Thursday, September 10. The ETF has a 0.55% expense ratio. [Dividend ETFs are Offering Value]
EUDV tries to reflect the performance of the MSCI Europe Dividend Masters Index, which consists of at least 25 European companies that have consistently increased their dividends for at least 10 consecutive years. The underlying index shows a 3.07% dividend yield.
“Dividend growth has historically been an indicator of a company’s financial strength and return potential,” Michael L. Sapir, co-founder and CEO of ProShare Advisors, LLC, said in the press release.
According to Ned Davis Research, both U.S. and international companies that grew their dividends year over year outperformed companies that did not, providing greater total returns. [Use Dividend Stocks, ETFs to Augment Long-Term Returns]
“Dividend-paying stocks have outperformed over the long haul,” according to Morningstar analyst Michael Rawson. “Since 1927, stocks that pay a dividend have beaten non-dividend-paying stocks by about 1.8% annualized.”
Moreover, companies that have steadily raised dividends also provide a hint at the quality of a firm’s overall well being.