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The use of a global dividend growth fund can be an acceptable way to gain international dividend growth stock exposure. There are a number of global dividend growth funds that have low expense ratios and have increased dividends over the past few years. A global dividend growth fund can help you diversify.
Use a Global Dividend Growth Fund to Gain International Exposure
Our dividend growth portfolio has been a solid form of passive income. We have been able to increase our monthly income with limited ongoing work. With dividend growth income you can increase your income while pursuing other passive income opportunities.
Check out our primer on how to use the dividend discount model to build a dividend growth portfolio.
What is a global dividend growth fund?
A global dividend growth fund is a investor-oriented fund that proactively seeks to invest in companies around the globe that have increased dividends and are focused on dividend growth for the near future.
We like to include one or two global dividend growth funds in our dividend income portfolio to give us broad exposure to companies that I cannot normally invest in or that are not actively traded on United States Stock Exchanges such as the New York Stock Exchange, Nasdaq and more.
I currently built a dividend growth portfolio using the Robinhood app. Robinhood offers $0 commission trading, so even if my dividend check is only $10. I can use that $10 to buy a $10 stock with no fee.
This is the ultimate compound interest vehicle. If you join Robinhood, we will both receive a free share of stock. Robinhood recently released ‘Robinhood Crypto’ a feature that allows you to trade cryptocurrencies completely commission-free.
What global dividend growth funds should I invest in?
There are a number of high-quality international dividend growth funds that offer attractive expense ratios and offer attractive dividend yields.
Here is a strong list of ETFs that offer global dividend growth. You need to find ETFs that offer the lowest expense ratios. I don’t like paying extra money for a product that doesn’t cost much money to be actively managed.
List of Global Dividend Growth Exchange Traded Funds (ETFs)
Some of the following international dividend ETFs are some of the best high dividend growth stocks with limited exposure.
However, be careful as high dividend yields or high dividend growth are not always predictors for the future value or future growth of the underlying companies.
Here is a list of global dividend growth funds to choose from and their corresponding expense ratios:
- iShares International Select Dividend ETF
- Expense ratio of 0.50% and total assets of $2.7 billion
- WisdomTree Emerging Markets High Dividend ETF
- Expense ratio of 0.63% and total assets of $1.2 billion
- SPDR S&P International Dividend ETF
- Expense ratio of 0.45% and total assets of $876 million
- WisdomTree Emerging Markets Small Cap Dividend ETF
- .63% expense ratio and total assets of $863 million
- WisdomTree International Equity ETF
- .48% expense ratio and total assets of $619 million
- WisdomTree International LargeCap Dividend ETF
- .48% expense ratio and total assets of $358 million
- FlexShares International Quality Dividend ETF
- .57% expense ratio and total assets of $380 million
- First Trust Dow Jones Global Select Dividend ETF
- .58% expense ratio and total assets of $344 million
- WisdomTree International High Dividend ETF
- .58% expense ratio and total assets of $251 million
- Vanguard International High Dividend Yield ETF
- .30% expense ratio and total assets of $32 million
- Vanguard International Dividend Appreciation Index
Personally, it is great to choose an international dividend ETF that has higher assets and a low expense ratio.
The higher the total assets, the greater liquidity to trade the ETF. Use the dividend income to reinvest with fractional shares investing.
Investing in a Global Dividend Growth Fund Conclusion
Keep in mind that foreign stocks typically have higher dividend yields than United States stocks. There are plenty of high-quality international dividend growth stocks that you can invest in without owning a global dividend growth fund.
I like pairing my ownership in one of the best international dividend growth stocks AND owning an international dividend growth fund that does not have that particular stock in its holdings.
Investing for passive income is possible and living off dividends is achievable so long as you follow my 5 favorite steps.
For example, I like to own BP and Vodafone (VOD). I would not own a global dividend growth fund with those two stocks (BP and VOD) included in the top holdings.
Avoid that situation since you are not diversifying. You are actually doing the opposite. Building a dividend portfolio is obtainable if you follow the steps and remain disciplined.
Have you allocated your assets to global dividend growth funds? How have you diversified your dividend income portfolio? Let me know in the comments below.
How about cryptocurrency? Have you invested in cryptocurrency to diversify your portfolio. We have a few suggestions on how to use cryptocurrency in your personal finance goals.
Disclosure: I am long iShares International Select Dividend ETF in my Robinhood dividend growth portfolio.
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