5 Foreign Funds for Income

Fund Watch

5 Foreign Funds for Income

Take the yield, but leave the stock-picking to the professionals with these funds.

If you’d rather not pick individual stocks, you can choose from a growing number of mutual funds and exchange-traded funds that focus on foreign dividend payers. Funds normally pay dividends twice a year, and sometimes they pay quarterly.

SEE ALSO: Our Slide Show of These 8 High-Yield Foreign Stocks

Mutual Funds

Run by an old-line New York City firm with a penchant for bargains, Tweedy, Browne Worldwide High Dividend Yield Value Fund (symbol TBHDX) holds high-yielding stocks all over the globe. At last report, 30% of the fund’s stocks were U.S. names. Mostly, though, the fund holds foreign blue chips, such as Novartis and Unilever. It yields 2.6%, and over the past year it gained 5.7% (results are through August 8). The MSCI EAFE index lost 0.7% over the past year.

Sponsored Content

Matthews Asia Dividend Investor (MAPIX) probes the globe’s healthiest economic region for firms of all sizes, most of which you wouldn’t recognize. It returned 1.0% over the past year; the current yield is 3.2%. Like the Tweedy, Browne fund, the Matthews fund does not levy a sales charge.


Exchange-Traded Funds

If you want maximum yield, check out SPDR Dow Jones International Real Estate ETF (RWX). The ETF, which invests in property stocks, sports a whopping 10.2% current yield. Over the past year, it produced a total return of 6.2%.

For broader diversification, use SPDR S&P International Dividend ETF (DWX), which owns shares of 125 foreign companies of all sizes and in all industries. It yields a solid 5.9%; over one year, it lost 0.8%.

PowerShares International Dividend Achievers (PID), which pays 3.8%, has half of its assets in the United Kingdom and Canada. All of its stocks have boosted dividends at least five years in a row. The fund returned 0.8% over the past year.

Follow Jeff on Twitter