5 Best Dividend Funds for the Fall

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5 Best Dividend Funds for the Fall

SPDR S&P International Dividend ETF

StateStreetSPDR185 5 Best Dividend Funds for the FallDividend Yield: 6.8%

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.


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/5-best-dividend-funds-fall/.

©2014 InvestorPlace Media, LLC

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