“The First Trust STOXX European Select Dividend Index Fund grants exposure to an index of stocks that are picked with a rigorous selection process. To be included in the STOXX Europe Select Dividend 30 Index, stocks must enjoy a positive five-year dividend-per-share growth rate and a ratio of dividend to earnings per share (EPS) of no more than 60%. In addition, they must have a net dividend yield that outperforms their region or county,” according to Investopedia.
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Just as there is with U.S. large-caps, there are legitimate dividend growth stories with some U.K. companies, some of which are already familiar to investors on this side of the Atlantic. Investors can use exchange traded funds to access some of those names. The U.K. and Switzerland are two of the top European dividend growth markets.
The Vanguard FTSE Europe ETF (NYSEArca: VGK) and the SPDR EURO STOXX 50 (NYSEArca: FEZ) are among the diversified Europe ETFs that also yield more than S&P 500 funds.
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First Trust STOXX European Select Dividend Index Fund
