International Dividend ETFs For High Yield Seekers
The ETF world has quite a few international options, particularly for investors looking for a higher yield that most domestic funds can offer. The average yield of the S&P 500 is only 2.14%, and this just isn't high enough for many investors who want to emphasize dividend yield over growth of the share price. The historical yield is 4.41%, and we aren't exactly close to reaching that average currently. Below is a chart of the S&P 500 dividend yield since 1860.
The Dow and S&P have no doubt outperformed foreign markets since the financial crisis, but other markets are offering a higher yield currently. For the long-term investor whose emphasis is on cash flow, this is a very good thing. For this type of investor, they actually look forward to a bear market so that they can acquire more shares when reinvesting those dividends. At the same time, it can be tough for many people to watch an asset they own decline in market price in the short run. For me, long-term investing goes hand in hand with reinvesting all dividends and using the power of compounding. When compounding is the goal, time is actually your friend, as compounding becomes more effective the longer it is allowed to go on uninterrupted.
Here are the choices for high yielding international dividend ETFs.
ETF
Yield
Expense Ratio
Total Assets
Number of Holdings
IDV - iShares International Select Dividend ETF
5.37%
.50%
2.66 Billion
100
DEM - WisdomTree... Read more