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International Select Dividend ETF: Worth The Hassle?

Published Mon, 15 Apr 2019 17:14:37 -0400 on Seeking Alpha

Welcome to another chapter in my series of dividend stock ETF investing. After analyzing primarily U.S.-based funds of the kind, I now turn my attention to an investment vehicle focused on international shares: the iShares International Select Dividend ETF (IDV).
According to the issuer, this ETF "tracks the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets." Among the top three holdings in the fund are British American Tobacco (BATS), Commonwealth Bank of Australia (OTCPK: CMWAY) and Royal Dutch Shell (RDS-A)(RDS-B), together accounting for about one-tenth of the ETF's total assets under management. In what pertains to geographic representation, the U.K. accounts for nearly one-fourth of the fund. Meanwhile, Australia, Italy and France combined add up to another one third of the total allocation.

Credit: Kiplinger
I have repeatedly argued that "dividend payers have clearly outperformed non-dividend payers over a very long period time, having achieved the feat with even lower volatility" - at least in the United States. This is particularly relevant for growth investors, as income seekers probably need little extra incentive to be interested in dividend stocks.
One of the potential benefits of investing in international shares is that they might be able to help a U.S.-heavy portfolio better diversify its equities position. To assess this feature using historical data, I compared the performance of... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
ROYAL DUTCH SHELL A 68.62   27.1 2.59 3.76 5.35
ROYAL DUTCH SHELL B 70.13   0.0 0.00 3.76 5.23
SPDR S&P 500 ETF 301.29   0.0 0.00 5.42 1.82
COMMONWEALTH BANK OF AUSTRALIA 55.94   0.0 0.00 0.00 0.00


Older articles featuring Royal Dutch Shell A (RDS-A):
By The Book IV.01: The Large Cap Value Dividend Strategy Meets October
Two 6% High-Yield Large-Cap Energy Dividend Stocks On Sale
Attack On Saudi Arabia: Analysis Of How This Impacts Your High Yield Investments
Fortune Global 500 Stocks Pay Piddly Dividends, Part 1
International Dividend Portfolio: Income Update Q2 2019
The Nest Egg Portfolio: Running The Numbers On Total's 5.5% Dividend Yield
11% Yield, 1.47x Coverage, No K-1: KNOT Offshore Partners
50 Highest Foreign Stock Dividend Yields - June 2019
EWU: The United Kingdom Offers Dividends And Value
My International Dividend Portfolio