By Tom Lydon via Iris.xyz
The S&P 500 yields a paltry 1.76% and over half the world’s dividend-paying stocks are found outside the U.S. Those data points confirm that in the search for higher yields and increased current income, international stocks are an integral part of the equation.
The ALPS International Sector Dividend Dogs ETF (IDOG) and the ALPS Emerging Sector Dividend Dogs ETF (EDOG) can help investors shore-up income needs while expanding a portfolio’s geographic horizons. IDOG and EDOG are international spins on the dividend dogs strategy set forth in the ALPS Sector Dividend Dogs ETF (SDOG), meaning the funds select the five highest yielding securities (based on regular cash dividends) in each of the 10 Global Industry Classification Standard (GICS) sectors.
IDOG and EDOG cap sector weights at 10% and individual component weights at 2% to mitigate regional and single stock risk.
Developed Market Dividend Darlings
Dividend payers in ex-US developed markets typically yield more than the equivalent U.S. stocks. For example, the MSCI EAFE Index yields 2.54%, or nearly 80 basis points (bps) above the S&P 500. IDOG goes even further with a trailing 12-month dividend yield of 3.32%.
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