Even Near an All-Time High, This Dividend ETF Looks Extremely Cheap

With the S&P 500 reaching yet different all-time precocious recently, galore stocks and ETFs consciousness costly close now. However, determination are fantabulous opportunities for semipermanent investors if you cognize wherever to look.

In the satellite of dividend stocks, determination are inactive immoderate large places to enactment wealth to work, and that's particularly existent erstwhile it comes to planetary dividend stocks. That's wherefore the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI) deserves a 2nd look, adjacent though its shares are adjacent their ain all-time high.

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As the sanction suggests, the Vanguard International High Dividend Yield ETF tracks an scale of stocks based extracurricular of the United States that wage above-average dividends. It has a 0.17% disbursal ratio, which is coagulated for a specialized scale money similar this -- particularly due to the fact that galore of the stocks it owns are lone listed connected overseas banal exchanges.

This is simply a wide scale with vulnerability to some emerging and developed markets worldwide. The money holds implicit 1,500 stocks, astir of which are larger companies. Although it's a weighted index, meaning larger companies relationship for much of the assets, it isn't astir arsenic top-heavy arsenic an S&P 500 scale fund. In fact, nary azygous banal makes up much than 1.8% of the portfolio.

Speaking of the stocks, don't deliberation that conscionable due to the fact that this is an planetary banal ETF that it's a clump of companies you've ne'er heard of. Top holdings see Novartis (NYSE: NVS), Nestle (OTC: NSRGY), and Toyota (NYSE: TM), conscionable to sanction a few.

Despite being adjacent an all-time high, you mightiness beryllium amazed by however overmuch of a bargain this ETF is. The mean banal successful the portfolio trades for conscionable 13.5 times net and is increasing those net astatine an mean complaint of 12.8% annually. Meanwhile, the mean banal successful the U.S.-focused Vanguard High Dividend Yield ETF (NYSEMKT: VYM) has a P/E ratio of much than 20 and a slower earnings maturation complaint of 11.6%. VYM-Vanguard High Dividend Yield ETF | Vanguard

To beryllium sure, determination are immoderate risks associated with investing successful planetary stocks, specified arsenic currency fluctuations and geopolitical headwinds, but this ETF trades for a monolithic discount adjacent with those things successful mind. At the existent price, the Vanguard International High Dividend Yield ETF has a astir 3% dividend output and could beryllium an fantabulous summation to your portfolio for diversification, income, and full instrumentality potential.