SCHD Has a Little-Known International Twin That Pays More, and Almost Nobody Owns It

SCHY mirrors SCHD's dividend-screening methodology but targets international developed markets, paying a ~6% yield at the same 0.09% expense ratio.

IDV concentrates in European financials and UK oils for maximum yield but swings wildly between quarters, ranging from $0.20 to $1.10 per share.

VYMI's 1,300-stock portfolio at 0.07% captures emerging-market dividend payers in Taiwan, China, and Brazil that most U.S.-listed ETFs exclude entirely.

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The Schwab U.S. Dividend Equity ETF ( NYSEARCA:SCHD ) has become the default income sleeve for millions of American portfolios, but its international sibling barely registers with the same audience. The Schwab International Dividend Equity ETF ( NYSEARCA:SCHY ) applies the same Dow Jones dividend-screening playbook to developed markets outside the United States, and it currently distributes at a higher rate than its domestic cousin.

For investors willing to look past the home-country tilt, two other funds round out a credible international income shelf: the iShares International Select Dividend ETF ( BATS:IDV ) for concentrated high-yield exposure, and the Vanguard International High Dividend Yield ETF ( NASDAQ:VYMI ) for the broadest reach across developed and emerging markets. Each fund answers a different question about how much yield, concentration, and geographic breadth an income investor actually wants.

Payout ratios in Europe, Japan, and Australia have historically run higher than in the U.S., where buybacks absorb a larger share of shareholder returns. That gap widened after several years of dollar weakness and rising profitability at European banks. Non-U.S. dividend funds have also outperformed their American peers over the past year: SCHY is up 25%, IDV has gained 29%, and VYMI has advanced 31%.

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