2026 is proving to be a positive year for global dividend stocks. So far, the Morningstar Global Markets High Dividend Yield Index has outperformed the Morningstar Global Markets Index, while remaining less volatile.
For investors looking to benefit from this trend, global equity income funds provide diversified exposure to companies with attractive dividend yields.
What Are Global Equity Income Funds?
Global equity income portfolios invest principally in global equities that pay out above-market yields. Funds in this category can invest in companies of any size, though many exhibit a large-cap bias.
The 4 Best Global Equity Income Funds to Buy in 2026
To find the best global equity income funds to buy, we screened for the lowest-cost primary share classes earning a
- JPMorgan Global Dividend Fund
- Trojan Global Income Fund
- Baillie Gifford Global Income Growth Fund
- BlackRock GFS Global Equity High Income Fund
Because the screen was created with the lowest-cost share class for each fund, some may be listed with share classes that are not accessible to individual investors, or they may be aimed at institutional investors and require large minimum investments. The individual investor versions of those funds may carry higher fees, reducing returns to shareholders. Medalist Ratings may differ among the share classes of a fund.
Morningstar expects the highly rated global equity income funds on this list to outperform their peers over a full market cycle. But even though all the funds on our list fall into the same category, they may practice different strategies, and therefore behave differently from each other. Investors need to do some homework to understand exactly what a particular fund invests in before buying.
Here’s a quick look at each of the best global equity income funds. Be sure to review a fund’s complete report for more details.
JPMorgan Investment Funds - Global Dividend Fund
- : EUR 7 billionFund Size
- Index Fund: No
- : EAA Fund Global Equity IncomeMorningstar Category
- : GoldMorningstar Medalist Rating
- : N/AMorningstar Rating
The JPMorgan Investment Funds - Global Dividend Fund is led by a management team with an Above Average People rating from Morningstar and an average tenure of over six years. Helge Skibeli stands out as the longest-serving manager, with more than eight years of experience running the fund. JPMorgan earns a Parent rating of High.
The EUR 7 billion fund has climbed 14.15% over the past 12 months, underperforming the average fund in its category, which rose 18.74%. The JPMorgan fund, which launched in July 2023, has gained 11.90% over the past three years.
JPM Global Dividend is a compelling option in the global equity income Morningstar Category; it earns an Above Average People rating and a High Process rating.
Helge Skibeli has overseen the strategy since March 2018 and remains the ultimate decision-maker. A J.P. Morgan veteran of nearly 40 years, Skibeli has built his career around fundamental research, having previously led research teams across Asian, US, and global equities.
The strategy employs a disciplined, bottom-up stock-picking process supported by this extensive global research platform. Analysts covering more than 2,500 companies classify stocks as premium, quality, standard, or challenged and assign five-year expected return targets to guide portfolio construction. On top of this, the managers identify three types of dividend-payers: compounders, high dividend growth, and high dividend yield. About half of the portfolio is allocated to compounders, while the remainder is spread across high-yield and high dividend growth stocks.
The manager’s primary focus is on premium and quality names, maintaining a valuation-conscious, conviction-driven approach in a relatively concentrated portfolio of 60-80 holdings. The portfolio favors financially healthy, large- and mega-cap companies, with minimal small-cap exposure.
Henry Ince, analyst
Read Morningstar’s full report on the JPMorgan Investment Funds - Global Dividend Fund.
Trojan Global Income Fund
- : EUR 411.1 millionFund Size
- Index Fund: No
- : EAA Fund Global Equity IncomeMorningstar Category
- : GoldMorningstar Medalist Rating
- : ★Morningstar Rating
The Trojan Global Income Fund is run by a management team that earns a High People rating from Morningstar. The team averages over nine years with the fund. Troy Asset Management earns a Parent rating of Above Average.
The EUR 411.1 million fund has lost 2.20% over the past 12 months, while the average fund in its category is up 18.74%. The Troy Asset Management fund, which launched in October 2016, has climbed 5.64% over the past three years and gained 3.94% over the past five years.
Our conviction in this team’s investment acumen and ability to consistently execute a thoughtful process remains intact despite recent underwhelming performance. The strategy continues to merit a High People rating and an Above Average Process rating.
The disciplined and consistently applied approach favors high-quality companies that exhibit durable competitive advantages, have strong business models, and are run by capable management teams. They are low capital-intensive businesses that are conservatively financed, are cash generative, and pay out a robust dividend from the sweet spot. The managers build a concentrated portfolio that can stray far from peers in terms of sector exposures and country allocations, as evidenced by the historically large overweightings in the consumer sectors and companies listed in the UK. The strict quality criteria are clearly visible in the portfolio, which scores high relative to peers on metrics like return on equity or Morningstar Economic Moat Rating.
The strategy’s focus on high-quality companies and its defensive positioning have historically provided strong downside protection in volatile markets. However, style headwinds, some stock-specific missteps, and significant exposure to UK equities have hurt peer-relative performance in the postpandemic period.
Jeffrey Schumacher, director
Read Morningstar’s full report on the Trojan Global Income Fund.
Baillie Gifford UK & Balanced Funds ICVC-Baillie Gifford Global Income Growth Fund
- : EUR 345.6 millionFund Size
- Index Fund: No
- : EAA Fund Global Equity IncomeMorningstar Category
- : GoldMorningstar Medalist Rating
- : ★Morningstar Rating
The Baillie Gifford UK & Balanced Funds ICVC-Baillie Gifford Global Income Growth Fund is run by a management team that earns an Above Average People rating from Morningstar. The team averages eight years with the fund while James Dow, the longest-tenured manager, has been with the fund for close to 12 years. Baillie Gifford earns a Parent rating of Above Average.
The EUR 345.6 million fund has climbed 6.36% over the past 12 months, underperforming the average fund in its category, which rose 18.74%. The Baillie Gifford fund, which launched in March 2020, has climbed 6.23% over the past three years and gained 4.99% over the past five years.
An experienced team running a differentiated approach to income investing sees the People and Process Pillar ratings unchanged at Above Average.
The managers practice a long-term and differentiated approach, aiming to provide shareholders with a dependable source of income together with growth in income and capital. This aim is executed through a portfolio of equities chosen for the dependability of their income alongside capital growth, using a rigorous research framework. The strategy exhibits strong biases at the sector and regional levels relative to the index and peers. Against these comparators, it also shows more top-line quality: Return on equity and return on assets are materially higher, while debt/equity is substantially lower than the index. Nominally, the portfolio is a little more expensive in terms of price/earnings, which is in step with Baillie Gifford’s approach to investment. As a result, there can, at times, be a slight growth leaning, whereas the average peer tilts more toward a value style. This makes the strategy a differentiated option for those seeking capital growth and a rising income stream.
Henry Ince, analyst
Read Morningstar’s full report on the Baillie Gifford UK & Balanced Funds ICVC-Baillie Gifford Global Income Growth Fund.
BlackRock Global Funds - Systematic Global Equity High Income Fund
- : EUR 12.4 billionFund Size
- Index Fund: No
- : EAA Fund Global Equity IncomeMorningstar Category
- : GoldMorningstar Medalist Rating
- : ★★★★Morningstar Rating
The BlackRock Global Funds - Systematic Global Equity High Income Fund is led by a management team with an Above Average People rating from Morningstar and an average tenure of around eight years. Robert Fisher stands out as the longest-serving manager, with over 12 years of experience running the fund. BlackRock earns a Parent rating of Above Average.
The EUR 12.4 billion fund has gained 17.56% over the past 12 months, while the average fund in its category is up 18.74%. The BlackRock fund, which launched in March 2018, has climbed 15.04% over the past three years and gained 10.07% over the past five years.
Despite its complex design, this covered-call strategy has managed to deliver high income while retaining market exposure. It also benefits from a well-resourced and high-quality quantitative team. The strategy earns Above Average People and Process ratings.
The strategy targets a 7% annual yield and roughly 0.8 beta to global equities, using a combination of stocks, options, and futures. The equity sleeve employs an alpha model that blends 40-50 individual signals across company fundamentals, market sentiment, and macro themes to select and size stocks. It incorporates a dividend rotation model, launched in 2019, to allow for rotation into stocks ahead of their payout periods. This enables the equity sleeve to generate around 3% dividend yield without always maintaining positions in high-yielding companies, providing flexibility to invest in higher-alpha names. The equity sleeve comprises 250-400 names and is rebalanced on a weekly basis, resulting in portfolio turnover ranging from 100% to 200% over the past five years.
Stock bet is capped at 4% relative to the MSCI ACWI Minimum Volatility index, while country and sector deviations are limited to 10%. The team also applies beta and volatility constraints against the MSCI ACWI, with the equity sleeve typically maintaining a beta of around 0.8. This has resulted in a defensive tilt in the equity sleeve.
Claire Liang, principal
Read Morningstar’s full report on the BlackRock Global Funds - Systematic Global Equity High Income Fund.
