There are a few certainties in the world of investing. One is that dividends are a good. Another is that international companies generally pay better dividends than their U.S. counterparts. Next, stock-picking in foreign markets isn't always easy for U.S. investors.

IN PICTURES: Learn To Invest In 10 Steps

If you find yourself on the hunt for global dividends (and you should be), don't worry. There are plenty of exchange traded funds (ETFs) to help you garner fat yields without having to devote days of research on foreign stocks. With that, we decided to look for several international ETFs that should appeal to income investors. We sought out ETFs that hold high-quality stocks with reliable dividend histories that focused on sectors that are typically viewed as safe dividend bets.

  • WisdomTree International Utilities ETF (NYSE:DBU) Yield: 3.9%

  • iShares S&P Global Telecommunications ETF (NYSE:IXP) Yield: 5%

  • WisdomTree International LargeCap Dividend ETF (NYSE:DOL) Yield: 8%

Utilities: Always a Dividend Lover's Dream
The utilities sector, regardless of home domicile, is usually a favorite of dividend hunters. U.S. utilities pay good dividends with strong yields. International utilities often pay better dividends with comparable or stronger yields. From a competitive standpoint, international utilities are much like their U.S. brethren. They operate as near-monopolies and generate predictable, steady profits and that results in great dividends.

That's what makes the WisdomTree International Utilities ETF so appealing. Familiar names include National Grid (NYSE:NGG) of the U.K. and Germany's RWE AG. DBU is small compared to its peer group, with less than $39 million in assets (the average comparable ETF has over $258 million in assets) and the ETF is up just over 2% year-to-date. Then again, investors bet on utilities to get paid, not for capital appreciation, and that makes DBU's yield of 3.9% all the more attractive.

Put a Call into this ETF
The iShares S&P Global Telecommunications ETF isn't a pure international play as AT&T (NYSE:T) and Verizon (NYSE:VZ) can be found among the top 10 holdings, but like utilities, telecoms are another surefire dividend and yield play. Other top holdings include Mexico's America Movil (NYSE:AMX), China Mobile (NYSE:CHL) and France Telecom (NYSE:FTE), all fair yielders on their own. The focus on quality names is one reason to like IXP, which has $244 million in assets. IXP has a fair expense ratio of 0.48% and yields a decent 5%. If you're looking to get paid from domestic and international telecoms, IXP may be the way to go.

A Nice Sector Mix
The WisdomTree International LargeCap Dividend ETF doesn't focus on one specific sector, but it does have a bias toward some of the higher quality global dividend stocks. China Mobile can be found here, as can hefty oil yielders BP (NYSE:BP) and Total (NYSE:TOT). Nestle and Banco Sander Chile (NYSE:SAN) round out a nice sector mix among the top holdings.

Dividend stocks have a tendency to outperform those that don't pay their shareholders, and international stocks have been hot this year, so it's no surprise DOL is up 21% year-to-date. DOL is thinly-traded and has just $117.3 million in assets, but those factors shouldn't dissuade you. If anything, the 8% yield should entice you.

The Bottom Line: Span the Globe to Get Paid
Let's make this easy: International dividends are sure to provide a jolt to your portfolio, but there's no need to make yourself crazy looking for them. This trio of dividend-paying ETFs is ideal for the income investor with a long-term time horizon. (For more, check out our Investopedia Special Feature: Exchange Traded Funds.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Mutual Funds & ETFs

    7 Best ETF Trading Strategies for Beginners

    Exchange-traded funds are ideal instruments for beginning traders and investors. Learn the seven best strategies for trading ETFs.
  2. Mutual Funds & ETFs

    ETF Analysis: SPDR Dow Jones International RelEst

    Learn how the SPDR Dow Jones International Real Estate exchange-traded fund (ETF) is managed and for whom the ETF is most appropriate.
  3. Mutual Funds & ETFs

    ETF Analysis: iShares JPMorgan USD Emerg Markets Bond

    Learn about the iShares JPMorgan USD Emerging Markets Bond fund, which invests in bonds of sovereign and quasi-sovereign entities from emerging markets.
  4. Active Trading Fundamentals

    How Hedge Funds Front-Run Index Funds to Profit

    Understand what front running is, and learn how hedge funds use this investing strategy to profit from the anticipated stock buys of index funds.
  5. Mutual Funds & ETFs

    ETN Analysis: Rogers Intl Commodity Energy Total Return

    Learn more about the Rogers International Commodity Total Return, which is an exchange-traded note that tracks a broad index of commodity futures.
  6. Mutual Funds & ETFs

    ETF Analysis: Schwab US Large-Cap

    Discover how the Schwab U.S. Large-Cap exchange-traded fund is managed, the index it tracks and the investors for which it is most appropriate.
  7. Personal Finance

    A Day in the Life of an Equity Research Analyst

    What does an equity research analyst do on an everyday basis?
  8. Mutual Funds & ETFs

    ETF Analysis: ProShares UltraPro Nasdaq Biotech

    Obtain information about an ETF offerings that provides leveraged exposure to the biotechnology industry, the ProShares UltraPro Nasdaq Biotech Fund.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI Europe Financials

    Learn about the iShares MSCI Europe Financials fund, which invests in numerous European financial industries, such as banks, insurance and real estate.
  10. Mutual Funds & ETFs

    ETF Analysis: SPDR S&P Insurance

    Learn about the SPDR S&P Insurance exchange-traded fund, which follows the S&P Insurance Select Industry Index by investing in equities of U.S. insurers.
RELATED TERMS
  1. Equity

    The value of an asset less the value of all liabilities on that ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. Exchange-Traded Mutual Funds (ETMF)

    Investopedia explains the definition of exchange-traded mutual ...
  4. Hard-To-Sell Asset

    An asset that is extremely difficult to dispose of either due ...
  5. Sucker Yield

    When an investor has essentially risked all of his capital for ...
  6. Lion economies

    A nickname given to Africa's growing economies.
RELATED FAQS
  1. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  2. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  3. What does a high turnover ratio signify for an investment fund?

    If an investment fund has a high turnover ratio, it indicates it replaces most or all of its holdings over a one-year period. ... Read Full Answer >>
  4. Does index trading increase market vulnerability?

    The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
  5. How does additional paid in capital affect retained earnings?

    Both additional paid-in capital and retained earnings are entries under the shareholders' equity section of a company's balance ... Read Full Answer >>
  6. What types of capital are not considered share capital?

    The money a business uses to fund operations or growth is called capital, and there are a number of capital sources available. ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!