This Diversified Dividend ETF Pays 3.6% and Prioritizes Canadian Stocks
Want to collect a good dividend while having broad geographical exposure? Rather than handpicking a few or even several stocks, holding an exchange-traded fund (ETF) in your portfolio may be ideal under the current macroeconomic conditions and uncertainty. And one ETF that could make for a great option right now is the Invesco International Dividend Achievers ETF (NASDAQ:PID).
As its name suggests, it focuses on international dividend stocks. It holds shares of companies which have increased their dividend payments consistently for at least five years. That’s a good indicator of financial strength and growth, which are factors dividend investors should consider when choosing a good income stock to hang on to. There are 52 stocks in the portfolio, making it a fairly diverse option for investors. The fund’s expense ratio is a little high at 0.53%, but given that the portfolio is diverse yet focused on quality dividend stocks, it does look to be a justifiable rate.
The majority of the holdings are Canadian stocks, which account for 57% of the portfolio, followed by the United Kingdom at nearly 13%, and the United States at 10%. Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP), Telus (TSX:T)(NYSE:TU), and TC Energy (TSX:TRP)(NYSE:TRP) are some of its top holdings, and are good examples of the quality stocks investors will gain access to through this ETF.
At 3.6%, the ETF provides an attractive yield on top of all that diversification. This year, it has risen by 10% and its five-year gains are around 75%. That’s before factoring in the income you’ll generate from the dividend payments. If you’re looking for a strong investment to put in your portfolio, the Invesco International Dividend Achievers ETF may be one of the better ones to consider today.
