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. Those countries are a combined 40.5% of FDD’s roster.
FDD’s index yields just over 5%. This year, international stocks are beating their U.S. counterparts as both the widely followed MSCI EAFE Index and the MSCI Emerging Markets Index are topping the S&P 500. Several of this year’s top asset-gathering ETFs are ex-US developed and emerging markets funds.
The European economy is steadily improving, supported by a wide range of indicators, which may lead to above average growth for the remainder of the year and into the next. Eurozone growth has accelerated, with growth and business indicators showing positive results.
Investors have added nearly $325 million in new assets to FDD this year.
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