SPDR S&P International Dividend ETF
If you don’t mind some of the risk that comes with investing abroad, you can supercharge your yield via the SPDR S&P International Dividend ETF (DWX). This exchange-traded fund has an impressive yield of 6.8% and focuses on large-cap issues outside the United States.
Given that investing in foreign companies is harder for U.S. investors — either because certain stocks don’t trade on domestic exchanges, because financial information is harder to understand or because dividends only come once or twice a year — this is a great option for both global diversification as well as income. For an annual fee of 0.45%, or $45 on every $10,000 invested, you’ll be able to tap into an asset class that might be impractical otherwise.
Holdings right now include Belgacom, a Belgian telecommunications company; Ferrovial, a Spanish infrastructure company; and TDC, a Danish media giant.
Just be warned that international equity hasn’t done extraordinarily well in the last few years, so DWX hasn’t budged since spring of 2009 despite the S&P 500 roughly doubling in that same period.
However, many investors think that a rotation out of U.S. stocks is due after the big rally this year for American companies. If the U.S. falls out of favor, you could benefit from some international exposure — and the DWX fund gives you income to boot.