“If you believe that we’ll avoid a global recession and that fears about deflation are overdone, there’s a lot of attractively-priced assets out there,” Savary told Bloomberg. “There’s growing interest in the higher-yielding assets now.”
ETF investors can also capture the potential growth in European dividend stocks also have a number of options to choose from. For instance, the First Trust STOXX European Select Dividend Index Fund (NYSEArca: FDD) and WisdomTree Europe Quality Dividend Growth Fund (NYSEArca: EUDG) capture large dividend-paying European companies, and the WisdomTree Europe SmallCap Dividend Fund (NYSEArca: DFE) follows small-cap Europe dividend stock exposure. FDD has a 4.56% 12-month yield, EUDG has a 2.22% 12-month yield and DFE has a 2.98% 12-month yield.
The ProShares MSCI Europe Dividend Growers ETF (NYSEArca: EUDV) reflects 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. EUDV has a 1.88% 30-day SEC yield.
The O’Shares FTSE Europe Quality Dividend ETF (NYSEArca: OEUR) tracks the FTSE Europe Qual / Vol / Yield Factor 5% Capped Index, and O’Shares FTSE Europe Quality Dividend Hedged ETF (NYSEArca: OEUH) provides a currency-hedged version of OEUR.
Investors worried about continued devaluation in the euro currency as the ECB ramps up its accommodative measures may also consider the Deutsche X-trackers MSCI Eurozone High Dividend Yield Hedged Equity ETF (NYSEArca: HDEZ).
Furthermore, investors may take to the riskier real estate investment trusts segment across European markets as an attractive yield-generating opportunity with the iShares Europe Developed Real Estate ETF (NYSEArca: IFEU), which tracks European real estate stocks and real estate investment trusts. IFEU has a 3.67% 12-month yield.
Max Chen contributed to this article.