The phrase “dividend diva” may be overused when describing stocks and exchange trade funds, but the Global X SuperDividend ETF (NYSEArca: SDIV) lays legitimate claim to diva status.
SDIV, which turns five in June, tracks the Solactive Global SuperDividend Index and has $731 million in assets under management. The ETF’s underlying index provides exposure to 100 equal weighted companies that are among the highest dividend yielding stocks around the globe. Additionally, SDIV pays a monthly dividend.
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.
U.S. stocks account for 30.5% of SDIV’s weight. After that, the ETF’s international dividend credibility is enhance via a combined weight of over 28% to U.K. and Australian stocks. Among ex-U.S. developed markets, the U.K. and Australia are two of the most reliable dividend destinations.
[related_stories]SDIV currently sports a 30-day SEC yield of 7.9%, which is bolstered by the ETF’s significant exposure to income-generating financial services and real estate stocks. Financial stocks command 21.6% of the ETF’s weight while real estate investment trusts (REITs) and mortgage REITs, or mREITs, combine for another 35.8%.
“The fund’s top holdings include Banco do Brasil SA (Sao Paolo: BBAS3.SA), oil and gas firm ONEOK, Inc. (NYSE: OKE), and Australian consulting company WorleyParsons Ltd. (ASX: WOR.AX). The expense ratio for this ETF is 0.58%, which is higher than the global stock category average of 0.45%. The three-year average annualized return is 1.95%, meaning it underperforms compared to the category average of 3.9%. The fund’s dividend yield is 7.83%,” according to Investopedia.
The ETF charges 0.58% per year.
Global X SuperDividend ETF
