This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Get Fat Yields With Foreign Dividend Funds

An intriguing ETF is WisdomTree Emerging Markets SmallCap Dividend (DGS), which yields 3.7%.

During the past three years, the ETF has returned 33.5% annually, outdoing its average peer by 7 percentage points.

Jeremy Schwartz, WisdomTree's research director, says that dividend stocks can be a particularly appealing way to play small-cap emerging markets stocks. Because many of them are young and have weak governance structures, the small stocks can be volatile, he says. But dividend payers tend to be steadier. "If a company can pay a dividend, you can have more confidence that the cash flows will be reliable," Schwartz says.

For a mutual fund that offers a limited stake in foreign dividend payers, consider RNC Genter Dividend Income (GDIIX). While it focuses on U.S. names, the fund holds 10% of assets in foreign stocks. During the last three years, RNC Genter has returned 22.2% annually, outdoing 62% of large value peers.

Chief investment officer Dan Genter prefers stocks that are increasing their dividends at least 8% annually. He is wary of companies that have cut their dividends in the past five years.

A favorite holding is Total (TOT), a big French integrated oil company that yields 4.5%. Genter says that Total will expand production steadily over the next five years. That will boost profits and enable the company to flourish in a variety of market conditions.

"Total will make money, even if the price of oil drops to the low 80s," he says.

Genter also likes Novartis (NVS), a Swiss pharmaceutical giant. He says that the company should increase profits as it expands into the emerging markets.
Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DLS $59.49 0.15%
DGS $38.61 -0.05%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs