The best ETFs for Global Dividend Stocks

How do I invest in dividend stocks worldwide?

An investment in high-dividend-yielding stocks is seen as a solid investment. Dividends are usually paid by profitable and established companies. For investors seeking regular income in times of low interest rates, dividend stocks can provide attractive yields.

There are different index concepts available for investing with ETFs in global high-dividend equities. This Investment Guide for global dividend stocks will help you to differentiate between the most important indices and to select the best ETFs tracking indices on global dividend stocks.

0.29% p.a. - 0.50% p.a.
annual total expense ratio (TER) of global dividend ETFs
on global dividend stocks, which are 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 30/06/20

All global dividend ETFs ranked by fund return

 

The largest global dividend ETF by fund size in GBP

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 0 ETFs 2 ETFs 1 ETF
Number of constituents 95 (30/04/20) 1,701 (30/06/20) 86 (30/06/20)
Investment universe S&P Developed Broad Market Index (BMI): 7,709 (30/04/20) shares from developed countries worldwide (without REITs) FTSE All-World index: 3,961 (30/04/20) stocks from developed and emerging markets worldwide (without REITs) S&P Global Broad Market Index (BMI): 11,821 (30/04/20) shares from developed and emerging countries worldwide
Index rebalancing Annually
(December)
Semi-annually
(March and September)
Annually
(January)
Selection criteria Dividend quality, trading liquidity, indicated 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 MSCI World High Dividend Yield
Number of ETFs 2 ETFs 1 ETF 2 ETFs
Number of constituents 75 (29/05/20) 100 327 (30/04/20)
Investment universe Developed countries worldwide (excluding financials) STOXX® Global 1800 index: 1800 stocks from developed countries worldwide MSCI World index: 1,603 (30/06/20) stocks from developed countries worldwide (without REITs)
Index rebalancing Quarterly Annually
(March)
Semi-annually
(May and November)
Selection criteria Different quality factors, balance sheet valuation, dividend yield Dividend quality, non-negative payout ratio, indicated dividend yield Quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years
Index weighting Equal weighting By dividend yield Market cap (free float)

Source: justETF Research; as of 30/04/20

 

Dow Jones Global Select Dividend index

The Dow Jones Global Select Dividend index focuses on companies from developed countries worldwide that meet certain demands for dividend quality and liquidity. For this purpose, the index compares firms’ previous year to their five-year average. The final stock selection is based on the indicated dividend yield. Furthermore, the selected stocks are weighted by their indicated dividend yield. The investment universe is based on the S&P Developed Broad Market Index (BMI), excluding REITs.

 

Methodology of the Dow Jones Global Select Dividend Factsheet Methodology

  • Appr. 100 stocks from developed countries worldwide
  • Investment universe: S&P Developed Broad Market Index (BMI), which includes 7,709 stocks (as of 30/04/20), excluding REITs
  • Stock selection is based on the indicated dividend yield. In addition, companies must meet certain requirements with respect to dividend quality and trading liquidity
  • Selection criteria: Dividend-per-share ratio (previous year greater than or equal to the 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 tracks high dividend stocks from developed and emerging economies worldwide. Selecting the stocks with the highest dividend yields from its parent index, the FTSE All-World index (excluding REITs), the FTSE All-World High Dividend Yield index aims to reflect 50 percent of the parent index. With 1,701 constituents (as of 30/06/20), the FTSE All-World High Dividend Yield index is by far the largest available dividend index. The selection method is rather straightforward and based on the expected dividend yield for the next 12 months. The selected companies are weighted by their free float market cap.

 

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

  • 1,701 stocks from developed and emerging economies worldwide (as of 30/06/20)
  • Investment universe: FTSE All-World index, which comprises 3,961 constituents (as of 30/04/20), excluding REITs
  • Stock selection is based on the expected dividend yield for the next 12 months
  • Selection criteria: stocks with the highest dividend yields from investment universe (appr. 50 percent of the investable market capitalisation)
  • Index rebalancing takes place semi-annually in March and September
  • Index weighted by free float market capitalisation
 

MSCI World High Dividend Yield index

The MSCI World High Dividend Yield index focuses on the highest dividend stocks from developed countries worldwide. This dividend index includes 327 companies (as of 30/04/20) which are selected according to quality factors and dividend strength. The selection criteria include a dividend yield of at least 30 percent above the average of the underlying index (MSCI World index) and a non-negative dividend growth rate over the last 5 years. The selected stocks are weighted by their free float market capitalization.

 

Methodology of the MSCI World High Dividend Yield Factsheet Methodology

  • 327 dividend stocks from developed countries worldwide (as of 30/04/20)
  • Investment universe: MSCI World index, which comprises 1,603 shares (as of 30/06/20), excluding REITs
  • Stock selection is based on the indicated dividend yield
  • Selection criteria: quality factors, dividend yield of at least 30% above the average of the underlying index, non-negative dividend growth over 5 years
  • Index rebalancing takes place semi-annually in May and November
  • Index weighted by free float market capitalization
  • Maximum weight per individual stock is 5%
 

S&P Global Dividend Aristocrats index

The S&P Global Dividend Aristocrats index aims at long-term and sustainable dividend growth. It is based on the S&P Global Broad Market Index (BMI), which tracks stocks from developed and emerging economies worldwide. A company is only included in the S&P Global Dividend Aristocrats index if it has at least 10 consecutive years of a controlled dividend policy with rising or stable dividend payments. In addition, pre-defined yield criteria must be met. Despite the strict inclusion rules, the limits for individual securities, sector and country weightings ensure that no cluster risks arise in the index. The selected stocks are weighted by their indicated dividend yield.

 

Methodology of the S&P Global Dividend Aristocrats Factsheet Methodology

  • Appr. 100 dividend stocks from developed and emerging economies worldwide
  • Investment universe: S&P Global Broad Market Index (BMI), which includes 11,821 stocks (as of 30/04/20)
  • Stock selection is based on the indicated and the historical dividend yield
  • Selection criteria: controlled dividend policy with rising or stable dividends for at least 10 consecutive years
  • Index rebalancing takes place annually in January
  • Index weighted by indicated dividend yield
  • Weight per individual stocks is capped at 3%; weight per sector/country is capped at 25%; maximum of 20 stocks per country
 

SG Global Quality Income index

The SG Global Quality Income index tracks 75 to 125 high dividend stocks from developed economies worldwide. Financials are excluded. The selection process of the SG Global Quality Income index is based on comprehensive quality criteria (with respect to profitability, solvency, internal efficiency) and balance sheet valuation. To be selected, a firm’s dividend yield must be at least 4 percent (or 3.5 percent if less than 75 companies meet the criteria mentioned above). Both the expected and the indicated dividend yield are taken into account. A special feature of the index is the equal weighting of all selected dividend stocks.

 

Methodology of the SG Global Quality Income Factsheet Methodology

  • 75 to 125 dividend stocks from developed countries worldwide (excluding financials)
  • Stock selection is based on dividend yield
  • Selection criteria: quality factors, balance sheet valuation, dividend yield (at least 4%)
  • Index rebalancing on quarterly basis
  • Equal weighting of all securities in the index
 

STOXX® Global Select Dividend 100 index

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

 

Methodology of the STOXX® Global Select Dividend 100 Factsheet Methodology

  • 100 dividend stocks from developed countries worldwide
  • The index contains 40 stocks from North America, 30 stocks from Europe and 30 stocks from Asia-Pacific
  • Investment universe: The STOXX® Global 1800 index
  • Stock selection is based on the indicated dividend yield. In addition, companies must meet certain requirements with respect to dividend quality and payout ratio
  • Selection criteria: positive dividend growth over five years, dividend payments in four of the last five years, non-negative payout ratio (max. 60%)
  • Index rebalancing takes place annually in March
  • 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 GBP
TER
in %
Use of profits Fund domicile Replication method
Vanguard FTSE All-World High Dividend Yield UCITS ETF DistributingIE00B8GKDB10 1,756 0.29% p.a. Distributing Ireland Optimized sampling
Lyxor SG Global Quality Income NTR UCITS ETF - Monthly Hedged to GBP - AccLU1040688639 880 0.45% p.a. Accumulating Luxembourg Unfunded swap
SPDR S&P Global Dividend Aristocrats UCITS ETFIE00B9CQXS71 392 0.45% p.a. Distributing Ireland Optimized sampling
Xtrackers STOXX Global Select Dividend 100 Swap UCITS ETF 1DLU0292096186 305 0.50% p.a. Distributing Luxembourg Unfunded swap
Fidelity Global Quality Income UCITS ETFIE00BYXVGZ48 169 0.40% p.a. Distributing Ireland Full replication
Lyxor SG Global Quality Income NTR UCITS ETF - DistLU0832436512 96 0.45% p.a. Distributing Luxembourg Unfunded swap
iShares MSCI World Quality Dividend UCITS ETFIE00BYYHSQ67 88 0.38% p.a. Distributing Ireland Full replication
Invesco Preferred Shares UCITS UCITS ETFIE00BDVJF675 54 0.50% p.a. Distributing Ireland Full replication
WisdomTree Global Quality Dividend Growth UCITS ETF USD AccIE00BZ56SW52 31 0.38% p.a. Accumulating Ireland Optimized sampling
VanEck Vectors Morningstar Developed Markets Dividend Leaders UCITS ETFNL0011683594 27 0.38% p.a. Distributing Netherlands Full replication
Xtrackers MSCI World High Dividend Yield UCITS ETF 1D USDIE00BCHWNQ94 27 0.29% p.a. Distributing Ireland Full replication
Franklin LibertyQ Global Dividend UCITS ETFIE00BF2B0M76 19 0.45% p.a. Distributing Ireland Full replication
Lyxor SG Global Quality Income NTR UCITS ETF - AccLU0855692520 6 0.45% p.a. Accumulating Luxembourg Unfunded swap
Vanguard FTSE All-World High Dividend Yield UCITS ETF AccIE00BK5BR626 5 0.29% p.a. Accumulating Ireland Optimized sampling
WisdomTree Global Quality Dividend Growth UCITS ETF USDIE00BZ56RN96 3 0.38% p.a. Distributing Ireland Optimized sampling
Fidelity Global Quality Income UCITS ETFIE00BYV1YF22 2 0.45% p.a. Accumulating Ireland Full replication

Source: justETF.com; As of 14/07/20

 

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 30/06/20; Calculations in GBP including dividends