{"id":22014,"date":"2011-06-30T15:51:36","date_gmt":"2011-06-30T19:51:36","guid":{"rendered":"http:\/\/www.investmentu.com\/2011\/June\/.html"},"modified":"2011-06-30T15:51:36","modified_gmt":"2011-06-30T19:51:36","slug":"three-of-the-best-dividend-investments-in-the-world-2","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/06\/30\/three-of-the-best-dividend-investments-in-the-world-2\/","title":{"rendered":"Three of the Best Dividend Investments in the World"},"content":{"rendered":"<p><a class=\"post_title\" href=\"http:\/\/www.investmentu.com\/2011\/June\/three-global-dividend-investments.html\">Three of the Best Dividend Investments in the World<\/a><\/p>\n<p>by <a href=\"http:\/\/www.investmentu.com\/investment-experts\/carl-delfeld.html\" >Carl Delfeld<\/a>, <em>Investment U<\/em> Senior Analyst<br \/>\nThursday, June 30, 2011: Issue #1546<\/p>\n<p>When I was with a Wall Street firm, it was common  for stockbrokers to mock investors who focused on income.<\/p>\n<p>Traditionally, income meant bonds&#8230; And in the old days many bonds came with coupons,  which investors clipped and then cashed&#8230; And nothing was worse than being labeled  a &#8220;coupon clipper.&#8221; But today, bond investors <em>do<\/em> have it even worse.<\/p>\n<ul>\n<li>One-year Treasuries yield nearly 0.19% right now.<\/li>\n<\/ul>\n<ul>\n<li>Meanwhile, inflation just hit 3.6%, according to the latest estimates from the  Bureau of Labor Statistics.<\/li>\n<\/ul>\n<p>That means you&#8217;re actually losing purchasing  power by &#8220;collecting income&#8221; from one-year Treasuries right now.<\/p>\n<p>So if you&#8217;re looking to add to your income  portfolio, what&#8217;s an investor to do?<span id=\"more-22091\"><\/span><\/p>\n<p><strong>Outperforming Bonds and More Stable Than High-Growth Stocks <\/strong><\/p>\n<p>In a word: dividends.<\/p>\n<p><a href=\"http:\/\/www.investmentu.com\/2011\/February\/healthy-dividend-paying-stocks.html\" >Dividend-paying stocks<\/a> are not only outperforming  in terms of bonds&#8230; They tend to be more stable than high-growth stocks. And in  uncertain times like these, that&#8217;s an important consideration.<\/p>\n<p>The question is: Where can you find the best  dividends in the world today?<\/p>\n<p>For the answer, you need  to look overseas&#8230; Here&#8217;s what I mean&#8230;<\/p>\n<p><strong>Going Global  for Strong Dividend Yields<\/strong><\/p>\n<p>Companies overseas offer a great opportunity to bolster your  dividend portfolio.<\/p>\n<p>Take Asia, for example.<\/p>\n<p>In 2010, companies in the MSCI Asia-Pacific Index paid out  almost as many dividends as those listed in the S&amp;P 500.<\/p>\n<p>And according to Matthews Funds, from 2002 to 2009, Asian companies grew dividends at a compound annual growth rate of 18%, compared  to 10% for the S&amp;P 500. Japan, China, Australia, Taiwan and Hong Kong are  the biggest dividend payers in the region.<\/p>\n<p>Europe also offers some strong  opportunities:<\/p>\n<ul>\n<li><strong>France Telecom<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=NYSE:FTE\" >FTE<\/a>) offers an 8.9%  dividend yield.<\/li>\n<\/ul>\n<ul>\n<li><strong>British  American Tobacco<\/strong> (AMEX: <a href=\"http:\/\/www.google.com\/finance?q=AMEX:BTI\" >BTI<\/a>) has a 4.2%  dividend yield and a 17%  annual dividend  growth rate over the past five years.<\/li>\n<\/ul>\n<p>All of these are worth considering.<\/p>\n<p>But my favorite dividend investments right now aren&#8217;t stocks. They&#8217;re  exchange-traded funds (ETFs).<\/p>\n<p>These investment vehicles offer instant diversification, low costs,  strong profits tied to <a href=\"http:\/\/www.investmentu.com\/2011\/April\/emerging-market-financial-growth.html\" >emerging market growth<\/a>, and still provide yields that  crush bonds.<\/p>\n<p><strong>My Three  Favorite Global Dividend ETF Investments <\/strong><\/p>\n<p>Here are my three favorite dividend ETFs right now&#8230;<\/p>\n<ul>\n<li><strong>DIVIDEND  ETF #1:<\/strong> The brand new <strong>Global X SuperDividend ETF<\/strong> (NYSE: <a href=\"http:\/\/finance.yahoo.com\/q?s=SDIV&amp;ql=0\" >SDIV<\/a>) tracks the performance of 100 equally weighted dividend companies from  around the world. SDIV provides good diversification with exposure  to REITs (22%), consumer discretionary stocks (16%), telecommunications (16%),  financial services (10%), utilities (8%), banking (5%), consumer staples (5%),  energy (5%), industrials (5%), insurance (3%), technology (3%), and health care  (2%).Nearly 32%  of the companies in the basket are U.S.-based,  24%  in Australia, 10%  in Great Britain, 6%  in Canada and 4%  in Singapore, among  others. In addition, the fund currently pays out 4.08%  annually.<\/li>\n<\/ul>\n<ul>\n<li><strong>DIVIDEND  ETF #2:<\/strong> Second, consider one of my long-time favorite  ETFs, the <strong>PowerShares International Dividend Achievers  Portfolio<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=NYSE:PID\" >PID<\/a>). To become a part of this exclusive basket, companies must  have a record of increasing their dividends for five consecutive years. The  United Kingdom and Canada comprise 50%  of its holdings. U.S. companies make up  a mere 6%.  The fund has risen steadily up 8.16% over the last 12 months and is currently returning an annual yield of 2.81%.<\/li>\n<\/ul>\n<ul>\n<li><strong>DIVIDEND ETF #3: <\/strong>Finally,  if you&#8217;d like more Asia and emerging-market exposure, purchase <strong>WisdomTree&#8217;s  Emerging Market Equity Income ETF<\/strong> (NYSE: <a href=\"http:\/\/www.google.com\/finance?q=NYSE:DEM\" >DEM<\/a>). DEM has 20%  exposure  to Taiwan and 20%  to Brazil. Telecom companies make up a majority of the  companies in the basket. You can expect it to distribute dividend income in the  area of 5%  annually.<\/li>\n<\/ul>\n<p>With this global triple play, your  stock portfolio will get a welcome shot of income &#8211; and <a href=\"http:\/\/www.investmentu.com\/2011\/January\/global-portfolio-diversification.html\" >global diversification<\/a>.<\/p>\n<p>Good investing,<\/p>\n<p>Carl Delfeld<\/p>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=KapMMhLdrTM:6H7yrtG2wiM:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=KapMMhLdrTM:6H7yrtG2wiM:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=KapMMhLdrTM:6H7yrtG2wiM:V_sGLiPBpWU\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=KapMMhLdrTM:6H7yrtG2wiM:qj6IDK7rITs\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?d=qj6IDK7rITs\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=KapMMhLdrTM:6H7yrtG2wiM:gIN9vFwOqvQ\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=KapMMhLdrTM:6H7yrtG2wiM:gIN9vFwOqvQ\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?a=KapMMhLdrTM:6H7yrtG2wiM:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/InvestmentU?i=KapMMhLdrTM:6H7yrtG2wiM:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/InvestmentU\/~4\/KapMMhLdrTM\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p><a href=\"http:\/\/www.investmentu.com\/2011\/June\/three-global-dividend-investments.html\">Three of the Best Dividend Investments in the World<\/a><\/p>\n<p>by <a href=\"http:\/\/www.investmentu.com\/investment-experts\/carl-delfeld.html\" target=\"_blank\">Carl Delfeld<\/a>, <em>Investment U<\/em> Senior Analyst<br \/>\nThursday, June 30, 2011: Issue #1546<\/p>\n<p>When I was with a Wall Street firm, it was common  for stockbrokers to mock&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-22014","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=22014"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22014\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=22014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=22014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=22014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}