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5 Global High Dividend ETFs Under $25 in Focus

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Dividend investing has been a true star this year. The wave of easy money polices across the globe, be it in Europe or Asia, negative interest rates in a number of economies including the euro zone and Japan, and still-shaky economic readings have brightened the appeal for dividend investing.

Confirming growth issues, the IMF reduced its global growth estimate to 3.2% for this year in April. The latest numbers show a reduction of 0.2% for 2016 from what it projected in January, and a cut of 0.4% from the October forecast.

Back home, moderation in growth held the Fed back from being outright hawkish even after the liftoff in December 2015. All these forces kept bond yields at check globally. As a result, investors looking for steady current income shifted their focus to high dividend stocks. These cash payouts can safeguard one’s portfolio in bear market movements and ensure steady income in a low yield backdrop.

While investors are betting bigger on high dividend stocks and ETFs, nothing could be better if this dividend feature can be clubbed with cheaper prices. After all, with low-priced stocks, retail buyers will need less cash to join the market.

Also, stocks below $25 see huge profits as share price increase of less than a dollar adds to 4% in one’s portfolio. On the other hand, stocks priced at $100 or above see 1% or less gain if their share prices rise by $1. Thus, we highlight five high yield dividend ETFs under $25 that investors can keep a watch on in the days to come (see: all the World ETFs here).

PowerShares High Yield Equity Dividend Achievers (PEY) – $14.76 (as of May 16)

This ETF tracks the NASDAQ US Dividend Achievers 50 Index, focusing on 50 stocks for exposure. Securities are selected for this fund based on their dividend yield, and their consistency in growing dividends (read: ETF Picks for a Retirement Portfolio).

From a sector look, utilities dominates at nearly 22.5% of assets, while energy (20.76%), financials (17.99%) and consumer staples (14.02%) round out the top four. No single firm makes up more than 6.08% of the total. The fund charges investors 54 basis points a year in fees, while it pays out a decent 30-Day SEC Yield of 3.51%.

FlexShares International Quality Dividend Dynamic ETF (IQDY) – $22.45 (as of May 16)

The fund gives exposure to 198 international stocks with a tilt toward U.K. (16.63%), Japan (13.86%) and Germany (883%). The fund has 56.81% of its assets invested in large-cap stocks followed by mid-caps (32.05%). Financials is its top sector with 27.24% weight while consumer discretionary and industrials get a respective of 12.75% and 10.87% exposure.  It charges 47 bps in fees. IQDY yields about 4.32% annually (as of May 16, 2016) and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. The fund has a P/E (ttm) of 13 times.

Guggenheim S&P Global Dividend Opportunities Index ETF (LVL) – $9.39 (as of May 16)

This ETF follows the S&P Global Dividend Opportunities Index which focuses on high yielding securities from around the world. As many as 107 securities are chosen for inclusion, with heavy exposure to the finance, energy, utilities, telecom and consumer discretionary securities.

American stocks account for roughly 24% of total assets. The 12-month yield comes in at 5.90% (as of May 16, 2016), while the expense ratio comes in at 0.65% per year. The fund trades at a P/E (ttm) of 12 times.

Global X SuperDividend ETF (SDIV - Free Report) – $20.66 (as of May 16)
 
This ETF provides exposure to 101 high yield stocks from around the world with each holding less than 1.73% of assets each. REIT firms take the top spot at 42.1% followed by financials (15.2%) and energy (11.4%).
 
From a country look, about 40% of the portfolio is allocated to America followed by 20.1% invested in Australia. Expense ratio comes in at 0.58%. The fund pays a solid dividend yield of 7.07% while its 30-day SEC yield is higher at 7.67%. The fund trades at a P/E (ttm) of 12 times (read: Earn 5% Plus Yield with These Global ETFs).

First Trust Dow Jones Global Select Dividend Index Fund (FGD - Free Report)  -- $22.56 (as of May 16)

The fund tracks the Dow Jones Global Select Dividend Index, providing exposure to the 98 highest-yielding stocks that have passed the eligibility screens for dividend quality and liquidity. None of the securities accounts for more than 1.89% of the assets. From a sector look, financials take the top spot at 34.29% while energy, telecom and industrials round off the next three spots with double-digit exposure each (read: High Income ETFs Worth Their High Costs).
 
In terms of country profile, Australia, U.S. and Canada occupy the top three positions. Expense ratio comes in at 0.58%. FGD has 5.09% in annual dividend yield. The fund trades at a P/E (ttm) of 13 times.


 
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