This article was originally published on ETFTrends.com.
The U.S. is home to some of the most dependable dividend-paying stocks in the world, some of which have payout increase streaks measured in decades. And yes, S&P 500 member firms spend sizable sums annually on dividends.
Yet, that index's dividend yield hovers around multi-decade lows. That confirms that equity income investors can benefit from looking abroad; the ALPS International Sector Dividend Dogs ETF (IDOG) makes that objective easier. The $547.1 million ETF, which turns 13 years old this month, leans into high dividend payers from across the ex-U.S. developed markets landscape.
However, IDOG is not home to yield traps. The ETF's 3.41% distribution is more than triple that of the S&P 500, but it's not so high as to imply the fund's holdings are at risk of being dividend offenders.
"An unusually high yield can be a warning sign rather than an opportunity, reflecting a falling share price caused by deteriorating fundamentals or financial stress," noted Morningstar's Fernando Luque.
The U.S. is home to some of the most dependable dividend-paying stocks in the world, some of which have payout increase streaks measured in decades. And yes, S&P 500 member firms spend sizable sums annually on dividends.
Yet, that index's dividend yield hovers around multi-decade lows. That confirms that equity income investors can benefit from looking abroad; the ALPS International Sector Dividend Dogs ETF (IDOG) makes that objective easier. The $547.1 million ETF, which turns 13 years old this month, leans into high dividend payers from across the ex-U.S. developed markets landscape.
However, IDOG is not home to yield traps. The ETF's 3.41% distribution is more than triple that of the S&P 500, but it's not so high as to imply the fund's holdings are at risk of being dividend offenders.
"An unusually high yield can be a warning sign rather than an opportunity, reflecting a falling share price caused by deteriorating fundamentals or financial stress," noted Morningstar's Fernando Luque.
4 months ago
