Do you want to collect dividends and diversify your portfolio outside of Canadian and U.S. stocks? One exchange-traded fund (ETF) you’ll want to consider is the WisdomTree International Quality Dividend Growth Fund (CBOE:IQDG). As the name suggests, this is an international fund that’s focused on dividend growth.
The fund specifically focuses on stocks outside of Canada and the U.S. and which grow their payouts. Dividend growth stocks are often strong financially with ample cash flow to support not only their existing payouts but to continuously increase them.
There are around 260 stocks in the ETF and it charges an expense ratio of 0.42%, which is modest compared to other funds. It focuses heavily on industrials, consumer discretionary, information technology, and healthcare stocks. Those four sectors make up nearly 70% of the ETF’s overall portfolio. Japan, the United Kingdom, and Germany are also where about half of the stocks come from.
Among the biggest names in the ETF include BP (NYSE:BP), SAP (NYSE:SAP), and Nintendo (OTC:NTDOY). But even the largest holding accounts for less than 5% of the fund’s overall weight, ensuring that there isn’t too much exposure to any single stock in this portfolio.
With a yield of 2.4%, which is higher than the S&P 500 average yield of 1.2%, you’ll be collecting a solid, above-average payout with this ETF, while also diversifying your portfolio with many top international stocks.
Year to date, the ETF has risen by 13% in value and it can make for an excellent long-term investment to build your portfolio around.
