PID: International Dividend Achievers for Diversification

by: Dividend Growth Investor August 27, 2008 | about stocks: PID    

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So far I have concentrated my attention primarily on the Dividend Aristocrats and the High-Yield Dividend aristocrats, both published by the S&P. Those lists include companies which are members of the S&P 1500 and which have raised their dividends for more than 25 consecutive years. I have also tried investigating the Broad Dividend Achievers as well, which are stocks that have increased their dividends for at least ten consecutive years.

That wasn't enough for me, however. In my quest for creating a diversified portfolio I have been searching for international dividend growers. There are several lists out there that focus on international dividend growth stocks – Mergents International Dividend Achievers index, S&P/TSX Canadian Dividend Aristocrats, S&P Europe 350 Dividend Aristocrats [EUR].

The list that caught my attention was the International Dividend Achievers list, prepared by Mergent Inc. It is broader than the S&P Europe and Canadian dividend aristocrat’s lists. To quote from the company's website:

The International Dividend Achievers™ Index is designed to track the performance of dividend paying American Depositary Receipts and foreign common stocks trading on major US exchanges. To become eligible for inclusion in the International Dividend Achievers Index a stock must be incorporated outside the United States, trade on the NYSE, NASDAQ or AMEX, and have increased its annual regular dividend payments for the last five or more consecutive years. In addition, requires that a stock's average daily cash volume exceed $500,000 per day in Nov. and Dec. prior to reconstitution.

The international dividend achievers index has closely tracked its benchmark over the past 10 years. It performed better than the benchmark in only 3 of the past 10 years however.

click to enlarge

According to Mergents Inc, a $10,000 investment in the International Dividend Achievers Index ten years ago would be worth about $19,279 by the end of July 2008.

There's an ETF that tracks the index. The Ticker is PID.

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This article has 4 comments:

  •  
    Aug 27 10:29 AM
    Glad to see PID getting some attention. It's a major component of my portfolio aswell (since mid 2007). One fact not mentioned in the article; PID is actually down more than the S&P 500 since the top Oct 31 2007, but this must be because PID has a 34% allocation to financials (16% for S&P).

    Will be exciting to see if the big dividend payout last quarter is a one-time-thing..
    Reply | Link to Comment
  •  
    Aug 27 10:31 AM
    Note PID may not be as diversified as you imagine. Over 30% is in financial services, even after the big correction. Also turnover is very high at 44%.
    Reply | Link to Comment
  •  
    Aug 28 10:49 AM
    dont knock yourself out. just check our FRO & check history.just declared $3.00 @ share.ceo gets no pay-just div.income.i have no connection to this co except as a happy shareholder & no connection o wall st.
    Reply | Link to Comment
  •  
    Aug 29 01:15 PM
    Mam yu just gave me a great spread idea. Long DPN and short PID, arbing that nob-financial exposure will winout over the next 6/9 months in Europe and developed countries. I ave nothing against PID (I actually love it) just exploring this opportunity
    Reply | Link to Comment
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