Core Viewpoint - There are still attractive investment opportunities in dividend stocks, particularly in international markets, despite the S&P 500 reaching new highs [1][2]. Group 1: Investment Opportunities - The Vanguard International High Dividend Yield ETF (VYMI) is highlighted as a strong option for dividend investors, even though its shares are near all-time highs [2]. - This ETF tracks an index of international stocks that pay above-average dividends, with a low expense ratio of 0.17% [3]. - The fund provides broad exposure to over 1,500 stocks from both emerging and developed markets, with no single stock exceeding 1.8% of the portfolio [4]. Group 2: Performance Metrics - The average stock in the VYMI portfolio trades at a price-to-earnings (P/E) ratio of 13.5, with an average earnings growth rate of 12.8% annually [7]. - In comparison, the U.S.-focused Vanguard High Dividend Yield ETF (VYM) has a P/E ratio of over 20 and a slower earnings growth rate of 11.6% [7]. - The current dividend yield for the Vanguard International High Dividend Yield ETF is approximately 3%, making it a potential addition for diversification and income [7].
Even Near an All-Time High, This Dividend ETF Looks Extremely Cheap
The Motley Fool·2026-01-31 18:03