High dividend ETF

I put this high dividend ETF under the banner of worldwide market sectors which is obviously not right. We are not talking about a market sector of course.

But I really love this high dividend ETF and as I do not have another group of ETF’s which will suit this particular dividend ETF better I decided to put it right here under worldwide sectors, so forgive me for causing some confusion.

This high dividend ETF is all about worldwide investing (so in that respect we are just fine here in this section). 

It goes without saying that you will only find companies that pay out higher than average dividends. Stocks with high dividends provide 2 advantages for investors. The first one, of course, is that you may expect a dividend. The second advantage is often underestimated.

Stocks that pay out high dividends tend to attract a specific kind of investor. Especially long term investors love stocks with high dividends. You will find individual investors that are investing for retirement.

But you will also find professional investors that are after some sort of certain return on their investments. You may think of pension funds, investment funds, mutual funds and even Warren Buffet has a weak spot for high dividend stocks.

Long term investors do not possess the hectic mindset of a trader, they hold their shares for long periods of time. This results in stable prices even when the markets fall short. Short term traders often avoid these high dividend stocks precisely for the lack of price movement.

Vanguard All-World High Dividend Yield UCITS ETF

In this Vanguard All World High Dividend Yield index you will find approximately 1.100 large companies.

This high dividend ETF claims to invest on a worldwide basis in high dividend yield stocks but you will find these high dividend paying companies almost exclusively in well-developed countries.

The United States is the largest supplier of companies included in this dividend ETF. The United Kingdom comes in second with a 10% share and a striking third is Switzerland with a share of more than 5%. Germany, France, Japan and Australia all take up a share of slightly less than 5%. After that you will find companies from most Western economies and some from Asia.

Regarding market sectors the financial sector dominates with a 25% share. All other market sectors are evenly spread for the rest. The most conspicuous component of this high dividend ETF is the list of companies included.

You will find 1.100 companies within this dividend ETF and one by one they are the shining stars of their markets. Naming a few: Microsoft, Exxon Mobil, Nestle, Coca Cola, Toyota, Proctor & Gamble, Shell, Intel, Cisco Systems, Vodafone, Siemens and the list goes on and on. This Vanguard High Dividend ETF is a physical ETF which means that Vanguard is buying the underlying stocks.

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