The best ETFs for Global Dividend Stocks

How do I invest in dividend stocks worldwide?

An investment in high-dividend-yielding stocks is a solid investment. Dividends are usually paid by the companies which are profitable and economically strong. For investors seeking regular income in times of low interest rates dividend stocks present an attractive investment.

There are essentially four indices available to invest with ETFs in global high-dividend equities. This Investment Guide for global dividend stocks will help you navigate between the peculiarities of the Dow Jones Global Select Dividend, FTSE All-World High Dividend Index, S&P Global Dividend Aristocrats, SG Global Quality Income and STOXX Global Select Dividend 100 Index and ETFs tracking them. It will allow you to find the most suitable ETFs for you by ranking them according to your preferences.

0.30% p.a. - 0.50% p.a.
annual total expense ratio (TER) of global dividend ETFs
on global dividend stocks, which is tracked by ETFs
on global dividend stocks
The best indices for global dividend ETFs

The best global dividend ETF by 1-year fund return as of 30.11.16

All global dividend ETFs ranked by fund return

 

The largest global dividend ETF by fund size in EUR

All global dividend ETFs ranked by fund size

 

The cheapest global dividend ETF by total expense ratio

All global dividend ETFs ranked by total expense ratio

 
 

Indices on Global Dividend Stocks compared

Methodologies of the compared indices

Dow Jones Global Select Dividend FTSE All-World High Dividend Yield S&P Global Dividend Aristocrats
Number of ETFs 1 ETF 0 ETFs 1 ETF
Number of constituents 100 appr. 1,116 appr. 100
Investment universe Dow Jones Global Index: 3,890 shares from developed countries worldwide FTSE All-World: 3,026 stocks from developed and emerging markets worldwide (as of 31.12.14) S&P Global Broad Market Index (BMI): 10,539 shares in developed and emerging countries worldwide
Index rebalancing Annually
(December)
Semi-annually
(March and December)
Annually
(January)
Selection criteria Dividends-quality, trading liquidity, expected dividend yield Expected dividend yield Controlled dividend policy with rising or stable dividends for at least 10 consecutive years
Index weighting By dividend yield Market cap (free float) By dividend yield
 
SG Global Quality Income STOXX Global Select Dividend 100
Number of ETFs 1 ETF 2 ETFs
Number of constituents 25 - 75 100
Investment universe 26 developed countries worldwide (excluding financials) STOXX Global 1800 Index: 1800 stocks from developed countries worldwide
Index rebalancing Quarterly Quarterly
Selection criteria 9 quality factors (profitability, solvency, internal efficiency), balance sheet valuation, expected dividend yield (> 4%) Positive dividend growth over five years, the dividend payment in four of the last five years, a maximum of 60% payout ratio
Index weighting Equal weighting By dividend yield

Source: justETF Research; As of 31/03/2014

 

Dow Jones Global Select Dividend Index

The Dow Jones Global Select Dividend Index focuses on companies that meet certain demands for dividend quality and liquidity in the previous year in comparison to their five-year average. The stock passing the selection screens are ranked in the index by the indicated dividend yield. Index only includes stocks from the developed countries.

 

Methodology of the Dow Jones Global Select Dividend Factsheet Methodology

  • 100 stocks from developed countries worldwide
  • The Dow Jones Global Index includes 3,890 stocks from the developed countries worldwide (as of 31/03/2014)
  • Stock selection is based on dividend quality and trading liquidity
  • Selection criteria: Dividend-per-share ratio (previous year greater than or equal to five-year average) and dividend coverage ratio (167% or greater for USA and EU; 125% or greater for other countries)
  • Index rebalancing takes place annually in December
  • Index weighted by indicated dividend yield
  • The weight of any individual company is capped to 10%
 

FTSE All-World High Dividend Yield Index

The FTSE All-World High Dividend Yield Index includes the highest dividend stocks of developed and emerging economies worldwide. The index aims to reflect the 50 percent of the universe with the highest dividend yields. With 1,116 companies, this is the largest available dividend index. The selection is based on the indicated dividend yield for the next 12 months. The index is weighted by market capitalization of the selected companies.

 

Methodology of the FTSE All-World High Dividend Yield Factsheet Methodology

  • 1,116 stocks from developed and emerging economies worldwide (excluding REITs) (as of 31.12.14)
  • The FTSE All-World Index comprises 3,026 constituents worldwide (as of 31.12.14)
  • Stock selection is based on the indicated dividend yield for the next 12 months
  • Index rebalanced semi-annually in March and September
  • Index weighting by free float market capitalization
 

S&P Global Dividend Aristocrats Index

The S&P Global Dividend Aristocrats Index aims at a long-term and sustainable dividend growth. A company is only included in the index if it has at least 10 consecutive years of a controlled dividend policy with rising or stable dividends. In addition, pre-defined yield criteria must be met. Despite the strict inclusion rules, the limits of individual securities, sector and country weightings ensure that no cluster risks arise in the index. This dividend index can include not only stocks from developed but also from emerging markets worldwide.

 

Methodology of the S&P Global Dividend Aristocrats Factsheet Methodology

  • 100 dividend stocks from the S&P Global Broad Market Index (BMI)
  • The S&P Global Broad Market Index (BMI) includes 10,539 stocks from developed and emerging countries worldwide (as of 31/03/2014)
  • Index rebalancing takes place annually in January
  • Stock selection is based on the historical dividend ratios
  • Selection criteria: controlled dividend policy with rising or stable dividends for at least 10 consecutive years and sustainable in the future
  • Index weighted by indicated dividend yield
  • Weight per individual stocks is capped at 3%; weight per sector/country is capped at 25%; maximum 20 stocks from one country
 

SG Global Quality Income Index

The selection process of the SG Global Quality Income Index is based on comprehensive quality criteria. Among the reviewed global equity indices this is the only index that takes into account the expected dividend yield based on the analysts' consensus. This must be at least 4 percent or higher. Another special feature of the index is the equal weighting of all selected dividend stocks. Financials are excluded in this index.

 

Methodology of the SG Global Quality Income Methodology

  • 25 to 75 dividend stocks from a universe of 26 developed countries worldwide (excluding financials)
  • Stock selection is based on the analysts' consensus of expected dividend yield
  • Selection criteria: 9 quality factors (profitability, solvency and operating capability), positive risk assessment, expected dividend yield (at least 4% or 125% of the index universe)
  • Equal weighting of all securities in the index
  • Index rebalancing on quarterly basis
 

STOXX® Global Select Dividend 100 Index

The STOXX Global Select Dividend 100 Index includes a selection of companies that meet standards of high quality dividend. The global index is formed from the three regional indices STOXX Europe Select Dividend 30 Index, STOXX North America Select Dividend 40 Index and the STOXX Asia/Pacific Select Dividend 30 Index. Securities are selected in the sub-regions based on the historical dividend yield and are weighted by the indicated dividend yield.

 

Methodology of the STOXX® Global Select Dividend 100 Factsheet Methodology

  • 100 dividend stocks from the STOXX Global 1800
  • The index contains 40 stocks from North America and 30 stocks from Europe and Asia-Pacific
  • The STOXX Global 1800 Index includes 1,800 companies from developed countries worldwide
  • Index rebalancing on quarterly basis
  • Stock selection is based on the historical dividend ratios
  • Selection criteria: positive dividend growth over five years, the dividend payment in four of the last five years, a maximum of 60% payout ratio
  • Index weighted by indicated dividend yield
 

Global Dividend ETFs in comparison

The most important factors at a glance

When choosing a global dividend ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all global dividend ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all global dividend ETFs in detail
Compare all global dividend ETFs in a chart

Provider
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares STOXX Global Select Dividend 100 UCITS ETF (DE)DE000A0F5UH1 1,089 0.46% p.a. Distributing Germany Full replication
db x-trackers STOXX Global Select Dividend 100 UCITS ETF 1DLU0292096186 563 0.50% p.a. Distributing Luxembourg Unfunded swap
SPDR S&P Global Dividend Aristocrats UCITS ETFIE00B9CQXS71 270 0.45% p.a. Distributing Ireland Optimized sampling
Lyxor SG Global Quality Income NTR UCITS ETF D-EURLU0832436512 170 0.45% p.a. Distributing Luxembourg Unfunded swap
UBS ETF (IE) DJ Global Select Dividend UCITS ETF (USD) A-disIE00BMP3HG27 21 0.30% p.a. Distributing Ireland Full replication
WisdomTree Global Quality Dividend Growth UCITS ETF USD AccDE000A2AHL75 2 0.38% p.a. Accumulating Ireland Optimized sampling

Source: justETF.com; As of 05.12.16

 

Return comparison of all global dividend ETFs

The table shows the returns of all global dividend ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

Source: justETF.com; As of 30.11.16; Calculations in EUR including dividends