Global Dividends to Reach Near-Record Payouts? ETFs to Buy
Global companies are so cash-rich that they are looking forward to roll out dividends, according to a global study by Janus Henderson Investors, as qu...
Global companies are so cash-rich that they are looking forward to roll out dividends, according to a global study by Janus Henderson Investors, as quoted on a Bloomberg article. Payouts are expected to touch $1.39 trillion this year, the second-highest total ever, according to income money managers led by Ben Lofthouse in the same article. Janus believes that dividends will touch pre-pandemic highs within a year.
The money manager said the pandemic has proven to be less detrimental to corporate profits than expected. Companies are able to boost dividend payments because they dealt with the pandemic well thanks to well-supported monetary and fiscal policies, per Janus, quoted on Bloomberg.
Mining companies, usually among the biggest dividends payers, are also benefiting from the revival in commodity prices. Half of the restored payouts in Europe were from banks, Janus said, if we go by that article.
Hunt for Dividend Yield?
With the major central banks practicing easy money policies, treasury yields remained at extremely low levels .No wonder, such a low treasury yield would spur investors to rush to dividend destinations. This is especially true given that dividend hikes are back. We all know that dividend payments were mostly stalled in the year 2020 as the coronavirus-led anticipated corporate cash crunch led to the announcement of dividend cuts.
Now that dividend hikes are back, investors can bet on the below-mentioned dividend ETFs.
ETFs in Focus
Global X SuperDividend ETF (SDIV) – Yield 7.52%
The underlying Solactive Global SuperDividend Index tracks the performance of 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world. The index provider applies certain dividend stability filters. The expense ratio of the fund is 0.59%.
Invesco KBW High Dividend Yield Financial ETF (KBWD) – Yield 6.98%
The underlying KBW Nasdaq Financial Sector Dividend Yield Index is dividend-yield weighted and seeks to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. The expense ratio of the fund is 1.24% (read: 5 Dividend ETFs Yielding 5% or More).
Global X SuperDividend Alternatives ETF (ALTY) – Yield 6.77%
The underlying Indxx SuperDividend Alternatives Index tracks the performance of among the highest-dividend-yielding securities in each category of alternative investments, as defined by the Index Sponsor. The expense ratio of the fund is 2.82% annually.
Invesco KBW Premium Yield Equity REIT ETF (KBWY) – Yield 6.64%
The underlying KBW Nasdaq Premium Yield Equity REIT Index is dividend weighted, seeking to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States. The fund charges 35 bps in fees.
iShares Emerging Markets Dividend ETF (DVYE) – Yield 6.63%
The underlying Dow Jones Emerging Markets Select Dividend Index measures the performance of the companies in emerging market countries that have provided relatively high dividend yields on a consistent basis over time. The fund charges 49 bps in fees.
Global X SuperDividend U.S. ETF (DIV) – Yield 5.67%
The underlying INDXX SuperDividend U.S. Low Volatility Index tracks the performance of 50 equally-weighted common stocks, MLPs & REITs that rank among the highest-dividend-yielding equity securities in the United States. The fund charges 45 bps in fees.
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iShares Emerging Markets Dividend ETF (DVYE): ETF Research Reports
Invesco KBW Premium Yield Equity REIT ETF (KBWY): ETF Research Reports
Global X SuperDividend U.S. ETF (DIV): ETF Research Reports
Global X SuperDividend ETF (SDIV): ETF Research Reports
Invesco KBW High Dividend Yield Financial ETF (KBWD): ETF Research Reports
Global X SuperDividend Alternatives ETF (ALTY): ETF Research Reports
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