Using a global dividend growth fund is a viable strategy for getting exposure to international dividend growth stocks. Several such funds offer low expense ratios and have consistently increased their dividends in recent years. This type of fund helps diversify your investment portfolio.
Including a global dividend growth fund in your investment strategy can be beneficial. Our own dividend growth portfolio has provided a steady stream of passive income, helping us boost our monthly earnings with minimal ongoing effort. By utilizing dividend growth income, you can increase your financial gains while exploring other passive income opportunities.
For those interested in creating a dividend growth portfolio, we recommend using the dividend discount model as a guide.
A global dividend growth fund is designed for investors looking to invest in companies worldwide that prioritize increasing dividends in the near future. Adding one or two of these funds to your portfolio offers broad exposure to companies that may not be accessible or actively traded on major U.S. Stock Exchanges like the NYSE and Nasdaq.
I’ve created my dividend growth portfolio using the Robinhood app, which provides commission-free trading. This means I can reinvest even a modest $10 dividend check without incurring fees. If you join Robinhood, you’ll receive a free stock share, and they have recently introduced ‘Robinhood Crypto’ for commission-free cryptocurrency trading.
When considering which global dividend growth funds to invest in, look for those with attractive expense ratios and dividend yields. Here’s a list of ETFs with global dividend growth to consider, focusing on the lowest expense ratios as you don’t need to pay extra for actively managed funds without added value:
– iShares International Select Dividend ETF: 0.50% expense ratio, $2.7 billion total assets
– WisdomTree Emerging Markets High Dividend ETF: 0.63% expense ratio, $1.2 billion total assets
– SPDR S&P International Dividend ETF: 0.45% expense ratio, $876 million total assets
– WisdomTree Emerging Markets Small Cap Dividend ETF: 0.63% expense ratio, $863 million total assets
– WisdomTree International Equity ETF: 0.48% expense ratio, $619 million total assets
– WisdomTree International LargeCap Dividend ETF: 0.48% expense ratio, $358 million total assets
– FlexShares International Quality Dividend ETF: 0.57% expense ratio, $380 million total assets
– First Trust Dow Jones Global Select Dividend ETF: 0.58% expense ratio, $344 million total assets
– WisdomTree International High Dividend ETF: 0.58% expense ratio, $251 million total assets
– Vanguard International High Dividend Yield ETF: 0.30% expense ratio, $32 million total assets
When selecting an international dividend ETF, it’s wise to opt for one with higher assets and a low expense ratio, as this offers more liquidity for trading. Use the dividends to reinvest, especially through fractional shares.
Foreign stocks generally offer higher dividend yields compared to U.S. stocks. You can invest in high-quality international dividend growth stocks without necessarily owning a global dividend growth fund. A good strategy might include owning quality international dividend growth stocks in addition to a fund without overlapping holdings. Investing in passive income is achievable, and living off dividends can be a reality if you stick to tested strategies.
For instance, if you choose to own BP and Vodafone, it’s smarter not to pick a dividend growth fund that heavily invests in them to ensure proper diversification. Building a dividend portfolio is feasible by staying focused and following steps consistently.
Have you thought about diversifying your asset allocation with global dividend growth funds or considered cryptocurrency as an investment option for your portfolio? If you’re interested in expanding your knowledge on dividend income, we have resources you can explore.
I currently have holdings in the iShares International Select Dividend ETF in my Robinhood portfolio. If you’re looking for ideas to improve your dividend portfolio, subscribing to our newsletter can offer valuable insights.