Super Global Dividends With This Fund

By Tom Lydon, ETF Trends

For the first time on record, global dividends topped $1 trillion last year. The number was $1.03 trillion to be precise and plenty of countries and regions got in on the dividend growth act.

Members of the S&P 500 were big contributors to that number, chipping in almost $312 billion in payouts, but dividends spurted higher in other developed markets such as Australia and the U.K. Emerging markets companies contributed $1 of every $7 in global dividends last year. British firms threw in over $102 billion.

The Global X SuperDividend ETF (SDIV) is one way for income investors to get a little bit of everything when it comes to global dividends. SDIV, which tracks the Solactive Global SuperDividend Index, features a trailing 12-month yield of 6.74% and pays its dividend monthly, giving investors a steady income stream.

The advantage of SDIV’s monthly dividend cannot be understated, particularly because many foreign companies only pay dividends once or twice per year. “Compound interest is a powerful force. The more you compound your money over time, you more you will end up with at the end. So, it makes sense to invest in a stock or ETF which pays out its dividend monthly, as opposed to another investment which pays quarterly, semi-annually or annually,” writes Steve Nicastro on Seeking Alpha.

After a 23.6% weight to the U.S., SDIV allocates over 30% of its combined weight to Australia and the U.K. Australian companies paid $40.3 billion in dividends last year, nearly double the amount paid in 2012. Led by financial services and mining names, Australian dividends are expected to continue growing this year.

SDIV, which equal weights its 100 holdings, has $848.6 million in assets under management, over $600 million of which came into the ETF last year.

SDIV’s beta against the S&P 500 and the MSCI Emerging Markets Index are 0.99 and 0.87, respectively, according to issuer data. Emerging markets allocations within the ETF are scant with China and Brazil combining for just 3.8% of the fund’s weight.

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Global X SuperDividend ETF (SDIV) is a component of the D2 Capital Management Multi-Asset Income Portfolio.  Current SDIV dividend yield is 6.61% (as of 19 March 2014).

Disclosure:  I own the D2 Capital Management Multi-Asset Income Portfolio

The views expressed here are that of myself or the cited individual or firm and do not constitute a recommendation, solicitation, or offer by myself, D2 Capital Management, LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. D2, its clients, and its employees may or may not own any of the securities (or their derivatives) mentioned in this article.

 The Jacksonville Business Journal has ranked D2 Capital Management in the top 25 of Certified Financial Planners in Jacksonville.  The Firm is also a member of the Financial Planning Association of Northeast Florida, the Jacksonville Chamber of Commerce, the Southside Businessmen's Club, and the Beaches Business Association.