Plenty of markets outside the U.S. offer investors compelling opportunities for high dividend yields and payout growth, but with global dividend growth expected to slow this year, investors need to be selective when scouring international markets for income investments.

The ProShares MSCI EAFE Dividend Growers ETF (CBOE: EFAD) can help investors access a basket of dependable developed market dividend growers. EFAD tracks the MSCI EAFE Dividend Masters Index, a dividend growth offshoot of the widely followed MSCI EAFE Index. EFAD’s 54 holdings have minimum dividend increase streaks of 10 years.

EFAD may help investors gain improved risk-adjusted returns to European markets by diminishing downside risk while still participating in upside potential. Furthermore, its dividend focus also helps investors focus on quality companies with a history of growing dividends. There are good reasons to consider EFAD over a traditional, broad developed markets ETF.

“Historically, companies in the MSCI EAFE that grew their dividends outperformed those that didn’t,” according to ProShares.

Other Perks

Stocks in Europe and in international developed markets often have higher yields than those in the U.S. That means it’s possible to take advantage of a dividend growth strategy and relatively high dividend yields. International dividend growth stocks also come without the added U.S. interest rate sensitivity of high dividend paying stocks.

EFAD’s dependability could be another perk for investors at a time when dividend growth is expected to moderate.

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