3 Dividend Funds With Foreign Flair

Todd Trubey: Hi. I’m Todd Trubey, a senior manager research analyst with Morningstar.

If you’re a US investor with a domestic dividend fund, you might think the yield looks pretty weak lately. Well, there’s some good news and bad news. The good news is that equity income as a group recently had a 2.1% yield, which isn’t that much lower than their long-term average of 2.3%. The bad news is that 2.3% just isn’t that good. So, how do you get higher equity income? One way you can get more income from equities is if you look abroad, because non-US stocks often pay higher dividends. Today, I will highlight three Silver-rated funds that have good yields coming from foreign stocks.

One quick note: International dividends can face double taxation abroad and at home, although tax agreements with other nations, as well as the US foreign tax credit, often reduce the bill.

3 Dividend Funds With Foreign Flair

1. Vanguard International High Dividend Yield Index ETF VYMI
2. DFA International Small Cap Value DISVX
3. Lazard Global Listed Infrastructure GLIFX

The first fund is Silver-rated Vanguard International High Dividend Yield Index ETF, ticker VYMI, recently had a yield of 4.2%. This is an index fund from Vanguard, so it’s quite cheap and well-diversified, recently holding more than 1,650 stocks. Its since-inception annualized return through July 2025 was 9.5%, which ranks just outside the top quartile in its foreign large-value Morningstar Category.

Next, there’s Silver-rated DFA International Small Cap Value, ticker DISVX. It’s another broadly diversified foreign equity fund with low fees. It’s a bit more off the beaten path in the small and mid-value universe, so it likely provides more diversification to your overall portfolio. Recently, its 12-month yield was 3.7%. Now international small caps have lagged the last decade, but in the first seven months of 2025, it jumped 28.1% when the S&P 500 only gained 8.6%.

Turning to more specialty players, there’s silver-rated Lazard Global Listed Infrastructure, ticker GLIFX. Recently, its 12-month yield was 2.7%. It retains the foreign flavor, but with a 30-stock portfolio that focuses on sectors known especially for dividends. That is, nearly 55% of the portfolio is held in utilities, with another 33% in industrials. Its 10-year return of 9.5% was tops in the infrastructure category as of July 2025.

Watch 4 Must-Own Dividend-Growth Stocks for more on dividend investing.