This iShares Fund Has Grown Its Dividend 10% Per Year — and Retirees Are Quietly Buying In

The iShares International Select Dividend ETF (CBOE:IDV) is a top-class, well-diversified portfolio that will generate steady income for you. Retirees love the ETF for multiple reasons: it generates passive income, has upside potential, and offers ultimate diversification. Launched by BlackRock Fund Advisors as a component of iShares in 2007, the fund has had a solid run. 

It will give exposure to high-dividend-paying international stocks and tracks the Dow Jones EPAC Select Dividend Index. The fund has about $5.8 billion in assets under management. 

It has an expense ratio of 0.5%, which is slightly on the higher side when compared to the other ETFs, but it is a bargain. You only pay $50 per $10,000. The ETF picks companies that have paid consistent dividends and have high yields. This has helped IDV maintain a lofty yield of 4.71%. It pays an annual dividend of $1.95 per share. In 2025, its annual payout growth was 10.23%, attracting retiree investors. 

100 of the best global stocks

The fund features 100 stocks of well-known international companies. With IDV, retirees get an opportunity to invest in global companies and own a slice of the intriguing businesses. 

Some of the well-known companies include British American Tobacco, Mercedes-Benz, Vodafone, and Rio Tinto. Besides these, there are many companies you might not recognize, but they are high-quality businesses.

Notably, the fund saw its share price grow 33% in the past five years and generated a total return of 51.69% in a year, 74.66% in 3 years, and 82.37% in 5 years. Geographically, the fund has the highest allocation to the United Kingdom (20.51%), followed by Italy (11.20%) and France (9.37%). Sector-wise, it has the highest allocation to the financial sector (29.65%), followed by utilities (14.84%) and energy (10.90%). It only allocates 0.85% to the technology sector. 

The top 10 holdings form about 30% of the portfolio, and no stock has a weightage higher than 5%. Its top holdings include British American Tobacco, Total Energies, Rio Tinto, Vodafone, National Grid, and BHP Group. As you can see, the majority of these companies are in the defensive sector, ensuring steady growth despite market uncertainties. 

Steady passive income

The fund’s strong dividend history tells a story of global earnings growth. Its most recent quarterly distribution was $0.59, but it has also seen much better days. In 2022, IDV enjoyed a yield of 7.33%, which went down to 6.46% in 2024.

This shows that an improvement in the global economy will mean significant yield and capital appreciation. IDV is for long-term investors, and the diversification across countries, sectors, and companies ensures a resilient income stream. 

Its dividend safety rests on the foundation of some of the top energy and utilities companies that will continue to generate revenue, no matter where the market moves. These companies will always remain relevant, and they’re scattered throughout the portfolio. IDV gives you the 100 best dividend-paying companies in the world. 

Outperformed S&P 500

It is not a bad idea to add international stocks to your portfolio, and if the dollar loses value, you still get to be a winner with the international stocks, as foreign assets will be worth more in USD. It is ideal for retirees who want to move away from tech-focused funds since a dip in the industry could impact their returns. There are hundreds of tech-focused funds in the market, but they carry industry-specific risks. 

The fund has outperformed the S&P 500 in 2025 and soared 35% in a year. It has already gained 4.8% this year and is exchanging hands for $41.93. 

IDV stands out as one of the best international ETFs to go after in an uncertain global environment. No matter what happens to the economy, your money is safe in international stocks, especially if you’re looking for a high yield and steady income. It offers yield with top quality.