Market Overview

3 Global ETFs With Sky-High Dividends

3 Global ETFs With Sky-High Dividends

Finding stocks that are yielding more than 5 percent is difficult, considering the heights of the equity markets. Unless companies are actively raising their dividends, each marginal move higher in share price reduces the yield of their stock.

This problem has become especially poignant to equity investors that are relying on their portfolio to generate a steady income stream.  Fortunately, there are several ETFs that can solve this vexing issue with their overseas exposure.

1) Global X Superdividend ETF

The Global X Superdividend ETF (NYSE: SDIV) has more than $1.1 billion dedicated to 100 high dividend-paying stocks around the globe. This ETF takes an equal weighted approach to construct its portfolio and distributes income on a monthly basis. The current 30-day SEC yield of SDIV is 6.10 percent, and it charges an expense ratio of 0.58 percent.

Related: Consumer Discretionary ETFs Breakout To New Highs

So far this year, SDIV has shown that shareholders are not only receiving an excellent income stream, but also capital appreciation as well. This ETF has gained 14.41 percent amid exposure to both developed and emerging markets.


2) Guggenheim S&P Global Dividend Opportunities Index ETF

Another high yield competitor is the Guggenheim S&P Global Dividend Opportunities Index ETF (NYSE: LVL), which also houses 100 dividend-paying equities. This ETF currently has an SEC 30-day yield of 5.98 percent with heavy exposure to financials, utilities and telecommunication stocks. In addition, the largest country exposure in LVL is Australia, followed by the United States and Canada.

Despite the strong yield, this ETF may suffer from the fact that its expense ratio is on the higher end at 0.90 percent, and it only distributes income on a quarterly basis. 

3) SPDR S&P International Dividend ETF

Finally, the International Dividend ETF (NYSE: DWX) rounds out our list of sky-high dividend payers. This ETF is dedicated strictly to international stocks and eschews exposure to the United States. DWX has 123 holdings that must have a total market cap greater than $1 billion to be admitted into the fund.

This ETF currently has a 30-day SEC yield of 5.09 percent and charges an expense ratio of 0.45 percent.  So far this year, DWX has gained nearly 9 percent and is 3 percent off its highs amid a volatile summer in European markets.

Each of these ETFs offers a unique index construction and solid income stream for global equity investors.


Related Articles (LVL + SDIV)

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