While there are many ETFs that cover high dividend paying American companies, investors looking for dividend opportunities don’t have to limit their search to the United States. There are many international companies with a history of paying respectable dividends, and there are a ETFs that cover them.
Let’s review three of these ETFs, ranked by Net Assets (from smallest to largest):
3. First Trust S&P International Dividend Aristocrats ETF (FID)
This First Trust ETF tracks the S&P International Dividend Aristocrats Index, which consists of high dividend yielding companies outside the US that have increased or maintained dividends for at least 10 years. The top three holdings in this ETF are Engas SA (ENGGY), Keyera (KEY.TO), and China Overseas Land & Investment (00688.HK). This ETF has not been around for 10 years, but $10k invested in this ETF at its inception would be worth $13.21k today.
- Net Assets: $58.53 million
- Date founded: August 23, 2013
- Expense ratio: 0.60%
- Yield: 3.68%
- Total holdings: 79
- Net fund flows (past year): $22.52 million
2. WisdomTree Global ex‐U.S. Quality Dividend Growth Fund (DNL)
This WisdomTree ETF tracks WisdomTree Global ex-U.S. Quality Dividend Growth Index, which consists of dividend paying companies with growth characteristics that are based outside the US. The top three holdings in this ETF are BHP Group (BHP), Anglo American (AAL), and Novo Nordisk A/S Class B (NOVO B). $10k invested in this ETF 10 years ago would be worth $19.13k today.
- Net Assets: $550.01 million
- Date founded: June 16, 2006
- Expense ratio: 0.42%
- Yield: 2.11%
- Total holdings: 270
- Net fund flows (past year): $207.56 million
1. Vanguard International Dividend Appreciation ETF (VIGI)
This Vanguard ETF tracks the S&P Global Ex-U.S. Dividend Growers Index, which consists non-US companies that have consistently increased dividends for at least last 7 years. The top three holdings in this ETF are Novartis AG (NOVN), Novo Nordisk A/S Class B (NOVO B), and Nestle SA (NESN). This ETF has not been around for 10 years, but $10k invested in this ETF at its inception would be worth $17.38k today.
- Net Assets: $3.99 billion
- Date founded: February 25, 2016
- Expense ratio: 0.15%
- Yield: 1.31%
- Total holdings: 323
- Net fund flows (past year): $927.18 million