Seeking Dividends from Overseas

Jim Woods

Many investors actively seek out companies with high dividend yields because of several unique advantages, such as providing a source of steady income, offering reduced comparative risk, etc.

One example is the Fidelity International High Dividend ETF (FIDI), which is an exchange-traded fund (ETF) exclusively built to maximize gains from dividends. As a twist, however, FIDI holds a portfolio of 100 large- and mid-cap high-yielding stocks from developed markets that do not include the United States.

As a relatively new fund with an inception date of January 16, 2018, FIDI was designed by Fidelity Investments to cater to “an increased interest among Fidelity clients” who are seeking factor-based investments, as well as international exposure away from the United States.

The fund considers the following factors in selecting its equity holdings: dividend yield (70% weight), payout ratio (15%), and dividend growth (15%).

As a fairly new fund, FIDI has just $15.95 million in assets under management and an average daily trading volume of $180,000. Over its brief existence, FIDI has slid 8%. However, over the same period of time, the market has fared worse, falling 9.4%. The fund’s expense ratio of 0.39% is on the lower end, compared to other exchange-traded funds that focus on dividend-paying holdings. FIDI’s dividend payout is about 4%, which may well attract investors.

Chart courtesy of Stockcharts.com

FIDI’s top five holdings are Royal Dutch Shell PLC (RDSB), 3.27%; Vodafone Group PLC (VOD), 3.23%; Telstra Corporation Ltd (TLS), 3.14%; SSE PLC (SSE), 3.01%; and BT Group PLC (BT.A), 2.80%.

For investors seeking a dividend-paying fund with an international focus, Fidelity International High Dividend ETF (FIDI) could be worth your time to consider, especially after its recent pullback. As always, make sure to do your due diligence before making any investment decisions.

Exclusive  Smart Money Masters -- September 2017 Issue

I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

Paul Dykewicz explores the investment opportunities in Ulta Beauty, Inc.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 5 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details

LEARN MORE HERE

Jim Woods

A 20-plus-year veteran of the markets, Jim Woods has varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.

Product Details

LEARN MORE HERE

Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Mike Turner

Mike’s financial, mathematical, computer science and engineering background serves as the foundation for his disciplined, rules-based approach to trading. Mike’s three services include:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE