Dividends, Emerging Markets...Oh My.

It's no secret that strong dividends and juicy yields can be found in any number of global markets and often times, the international dividend stock is superior to the comparable U.S. firm in terms of payout in dollar terms, but investors might do well to go beyond developed markets in the search for international dividends. Yes indeed, investors can tap into the growth stories offered by many emerging markets while getting compensated for the risk. Don't worry if stock-picking isn't your cup of tea because this trio of emerging markets dividend ETFs will do the legwork for you. 1) WisdomTree Emerging Markets Equity Income Fund DEM: We recently went “Under The Hood” with DEM (April 28), extolling the ETF's virtue due to the fact that it has outperformed comparable dividend ETFs tracking U.S. stocks while noting DEM has diverse exposure with 260 holdings, none of which gets an allocation of more than 4.4%. Taiwan and Brazil account for more than 37% of DEM's weight. That's not necessarily bad, though we're left longing for a bit more exposure to other high-flying emerging markets. One thing worth noting is DEM's 22% allocation to telecom names. If you think AT&T T and Verizon VZ are great yield plays, find their equivalents in almost any emerging market and you'll find a better yield. Current yield: 3.22%. 2) WisdomTree Emerging Markets SmallCap Dividend ETF DGS: DGS is another one we've highlighted multiple times in the past year even as it has largely flown under the radars of many so-called experts. For those that like the diversity and balance of DEM, you'll LOVE DGS. This ETF is home to 450 stocks and with the top holding receiving a weight of just 2.32%. Another similarity to DEM is that DGS is heavily weighted to Taiwan (20.3%) at the country level, but the South Korea/South Africa/Thailand exposure is worth embracing. If DGS can break through the $57 area, it could be residing in the mid-60s, assuming the broader market cooperates and investors continue cozying up to EM ETFs. Current yield: 2.54%. 3) SPDR S&P Emerging Markets Dividend ETF EDIV: EDIV was in the spotlight in a recent “Checking In” feature (April 19) and the new kid on the block among EM dividend ETFs is worth a brief look once again as it appears the SPDR folks are on to something here. EDIV has attracted almost $30 million in assets under management, an impressive haul considering the ETF isn't even three months old. As is the case with DEM and DGS, EDIV is Taiwan-heavy (20%), but Brazil is the country allocation leader with 24.8%. Throw in some slight exposure to Chile and Mexico, and EDIV has almost 30% of its weight in Latin America, so it can be paired with either DEM and DGS to gain exposure to both Asian and LatAm emerging titans. Sector diversity is excellent here with five industry groups receiving double-digit weights.