Earning Dividends with International ETFs

Includes: DBU, DOL, IXP
by: Tom Lydon

Certain types of investors are always on the lookout for a nice dividend yield in their domestic holdings. Did you know that handsome yields can be found in international ETFs, as well?

International dividend ETFs can provide decent yields and remove the need to do research on foreign stocks. Instead of trying to pick foreign holdings on limited information, there are funds that have pulled together some high-quality, dividend-paying companies that you can hold in a basket, thus spreading out the risk.

Todd Shcriber for Investopedia reports that ETFs that hold high-quality stocks with reliable dividend histories that focused on sectors that are typically viewed as safe dividend bets.

Among the many available are:

  • WisdomTree International Utilities (NYSEArca: DBU): yield 9.89%; Utility funds can be a good bet no matter where you are, because there is always a need for the services utilities provide. These companies tend to pay out steady dividends that are predictable.
  • WisdomTree International Large Cap Dividend (NYSEArca: DOL): yield 8.04%; This ETF does not focus on one sector, rather it tends toward large, high-quality dividend stocks. It is a thinly traded fund, but has nice performance. Countries ranging from China to Brazil are featured in this ETF, both hot spots.
  • iShares S&P Global Telecommunications (NYSEArca: IXP): yield 5%; Telecom stocks are another sure play as they are indispensible and growing. This is not as international a play as the other two funds, as AT&T and Verizon are in the top 10 holdings. Nevertheless, the ETF contains quality names across the world.