Finally, I’d like to touch on the PowerShares International Dividend Achievers ETF (NYSE: PID), which is essentially an international version of the Vanguard Dividend Appreciation ETF I mentioned at the beginning of this article. Like DOO, PID is not technically a “Europe fund,” but Europe is the largest geographic area represented.There are a few idiosyncrasies worth noting. To be included, a company must be incorporated outside the United States but must trade as an ADR, GDR or on the U.S. or London exchanges. The ETF is weighted by dividend yield, so the stock with the highest weighting, at 4.4%, is Teekay Offshore Partners (NYSE:TOO). Tanker stocks are volatile, and this is not the sort of stock I would normally want in a conservative dividend portfolio. Unilever (NYSE:UN, NYSE:UL) is a stock that I would (and, in fact, do) put in a conservative dividend portfolio, but it is included in the PowerShares ETF twice: once for the Dutch-traded shares (UN) and once for the British-traded shares (UL). Still, even with its quirks, I believe PID is an excellent ETF choice for all of the same reasons as VIG. In my opinion, there is no better signal of quality than a consistent history of raising a company’s dividend. PID yields less than the other ETF options, at 2.6% (as of 3/6/13). But like VIG, it should be considered a high-quality growth ETF rather than a pure income ETF. Photo: otrocalpe The investments discussed are held in client accounts as of February 28, 2013. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.
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