With this in mind, let’s take a look at two dividend-paying investment trusts targeting different geographic regions. Each I believe is worth exploring further as candidates for inclusion inside an ISA.

Asia

Let’s start with Asia, the world’s fastest growing area. Despite being projected to contribute around 43% of the world’s GDP growth, China and India together account for just 6% of the MSCI All Country World Index. 

By contrast, the US makes up around 65%. Yet this gap’s set to narrow over the next decade as investors seek out cheaper valuations and portfolio diversification amid unpredictable US policy. 

One trust I like the look of is Schroder Oriental Income Fund (LSE:SOI). Despite rising 33% over the past year, the FTSE 250 trust still sports a decent 3.4% dividend yield.

It has a solid track record of dividend growth and is on track to become one of the Association of Investment Companies’ Dividend Heroes. Those are trusts that have hiked their annual dividend for at least 20 straight years. Schroder Oriental Income Fund has now done 19.

One risk here is high concentration, with Taiwan Semiconductor Manufacturing Company (TSMC) making up 13% of assets. If the artificial intelligence (AI) revolution runs out of stream, then this large holding in the world’s largest chip manufacturer could hold back performance.

Seen from a different angle however, it allows investors to benefit from the AI infrastructure boom while still collecting a dividend. TSMC’s foundries are absolutely humming. 

Elsewhere, the portfolio offers exposure to Singapore, Hong Kong, China and Australia. Plus, the shares are trading at a 5.2% discount to net asset value (NAV).

Latin America

Next, we have BlackRock Latin American Investment Trust (LSE:BRLA). This holds a number of stocks from Latin America, which is home to around 650m people.

Again, despite rising 41% in the past year, the dividend yield here is still decent at 4.6%. Top holdings include mining giants Vale and Southern Copper, as well as Grupo Aeroportuario del Sureste and Wal-Mart de Mexico.

There’s also a bit of high-growth zip in there with Nu Holdings (Nubank), the world’s largest digital bank outside China.

Concentration risk is also an issue here, with Brazil accounting for around 62% of the portfolio. While it’s the largest economy in Latin America, inflation there is also still quite high.

Then again, Brazil’s experiencing the strongest tourism surge in its history, and has a rising tech sector. So the economy’s on an upwards trajectory.

The explosion of digital payments in Brazil has created an innovative financial ecosystem that works for ordinary people. This progress is the result of a combination of an overhaul in the payments regulatory framework, intensive use of technology, entrepreneurship and a focus on creating products that address the needs of Brazilian customers.

World Economic Forum.

Meanwhile, Mexico’s set to benefit as US companies bring manufacturing closer to home and away from China (so-called friendshoring). Mexico has the second-largest country allocation, at around 23%.

Finally, the shares are trading at a 6.5% discount to NAV, offering what I deem to be an attractive entry point to consider for international income investors.

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One that has done really well for my portfolio recently is Pacific Horizon Investment Trust — it’s up 64% in the past 12 months. As the name implies, it’s focused on the Asia Pacific region.

Here, I’ll highlight one that’s focused on another particular part of the world.

This trust is flying

The name in question is BlackRock Latin American Investment Trust (LSE:BRLA). It doesn’t get much coverage as it only sports a £133m market cap. This small size excludes it from the FTSE 250, which is home to larger trusts like the aforementioned Pacific Horizon.

However, this hasn’t stopped it rocketing over 50% in the past year. Many Latin American firms have been getting a boost from a weak US dollar, higher commodity prices and investors seeking global diversity due to unpredictable US policy.

Take Chile for example, which is the world’s largest copper producer, accounting for around a quarter of the world’s copper supply. It’s also one of the world’s largest producers of lithium.

These resources are vital for the energy transition, with copper needed for electrification and lithium an important component in battery technology. In the past year, the price of these metals has soared 21% and 108%, respectively.

BlackRock Latin American’s top holding is Brazil’s Vale, the world’s largest producer of iron ore and nickel. The latter is a key component in electric vehicle batteries.

The second-largest holding is Southern Copper, a pureplay Peruvian copper giant with massive low-cost mines in Peru and Mexico.

Brazil and Mexico

Fortunately, the trust is about more than miners. It also has chunky positions in two Brazilian FinTechs: Nu Holdings (Nubank), the world’s largest digital bank outside of Asia and StoneCo. Nubank now has 131m customers!

A significant proportion of the portfolio is invested in Brazilian equities, which is unsurprising given that Brazil is the largest economy in Latin America by some distance. The Brazilian stock market is booming right now, so this has boosted performance.

However, nearly a quarter is in Mexico, a key beneficiary of the near-shoring of global supply chains (US companies moving manufacturing away from China, for example).

Key Mexican holdings are Grupo Aeroportuario del Sureste, the operator of several airports (including Cancun, where tourism is booming), Walmart de México (Walmex) and bank Grupo Financiero Banorte.

Looking at the portfolio, I think there’s a really good mix, albeit the huge weighting to Brazil adds concentration risk.

4.4% dividend yield

Another thing worth mentioning here is that the trust has lagged its Latin American index benchmark by an average of 3.3% a year in the past four years. So it has underperformed.

However, performance has picked up notably in 2026 and there’s a 4.4% dividend yield on offer. Moreover, the trust is trading at a 9.2% discount to net asset value.

In February, it wrote: “We remain constructive on Latin American equities. Strong inflows, a softer US dollar and resilient commodity prices have continued to support the region into 2026, while valuations remain reasonable despite a powerful start to the year“.

For investors looking for exposure to cheap Latin American stocks that pay a decent dividend, this trust is one worth thinking about.

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Individuals can choose to diversify themselves by building a customised portfolio of separate shares. However, this can create much more legwork and greater costs than buying a trust that does the hard work on investors’ behalf.

In addition, some assets that these investment trusts hold can’t be purchased in popular products like the Stocks and Shares ISA or Self-Invested Personal Pension (SIPP).

With this in mind, here are three high-yielding trusts to consider. As you’ll see, their prospective dividend yields soar above the FTSE 100 historical average of 3-4%.

Latin fever

At 5.7%, the BlackRock Latin American Investment Trust (LSE:BRLA) has the smallest dividend yield among this selection. But the potential for healthy long-term capital gains and passive income means it still merits serious attention.

In the past decade, it’s delivered an average total annual return of 7.9%. The trust provides exposure to 35 companies in total, which are as varied as iron ore producer Vale, railway operator Rumo and financial services provider Banorte.

This BlackRock trust portfolio spans much of Latin America, though the overwhelming majority (92%) of its holdings are in Brazil and Mexico.

This large weighting towards just two countries creates added regional risk. But focusing on Latin America’s richest and most populous nations also carries greater growth potential over time.

Going green

The Foresight Environmental Infrastructure (LSE:FGEN) trust’s designed to “support the drive towards decarbonisation, resource efficiency and environmental sustainability“.

This allows it to provide strong returns as governments and businesses step up to fight climate change. For this financial year, its dividend yield’s a FTSE 100-smashing 10.7%.

This investment trusts holds a portfolio of 41 assets, and its expertise extends far and wide. It provides wind and solar power, generates biomethane from waste products, and operates natural gas refuelling stations for trucks. This means it’s not dependent on a single technology, which can smooth returns across different market conditions.

Bear in mind though, that changes to electricity contracts could impact returns over the short term.

Residential hero

The trusts I’ve described have excellent records of dividend delivery. But they’re not obligated to pay a minimum amount out in profits to shareholders, which can make passive income levels more unpredictable for investors.

Real estate investment trusts (REITs) like Social Housing REIT (LSE:SOHO), on the other hand, tend to provide superior visibility. Under sector rules, a minimum of 90% of annual earnings from their rental operations must be paid in dividends. This is the price they pay for juicy tax breaks.

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I like this particular REIT because its defensive operations offer even more security to investors. It specialises in providing accommodation for adults with special care needs, demand for which is unaffected by broader economic conditions.

Social Housing’s forward dividend yield’s a huge 8.6%. I think it’s worth considering, despite the impact that interest rate movements can have on its property values.

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Schroder Income Growth Fund

As the name implies, the Schroder Income Growth Fund (LSE:SCF) is designed to provide investors with a rising dividend over time. This can be critical for long-term wealth building by protecting investors from inflationary impacts.

Dividends here have risen every year since the fund listed back in 1995.

In total, the Schroder Income Growth Fund has positions in almost 50 predominantly large-cap shares. This focus on market-leading companies with strong balance sheets (like Unilever, HSBC, and Legal & General) gives it excellent dividend visibility.

Today the fund carries a market-beating 5.3% forward dividend yield. And at 294p, its share price sits at a 9.8% discount to its net asset value (NAV) per share.

It may have fewer holdings than many other trusts, which in turn means higher risk. But I still think it’s worth considering at today’s prices.

BlackRock Latin American Investment Trust

The BlackRock Latin American Investment Trust (LSE:BRLA) is designed to capitalise on the region’s rising wealth and growing populations. More specifically, it’s focused on South America’s economic engine rooms of Brazil, Mexico, and Chile.

The fund invests across multiple sectors, helping it to spread risk and profit from a multitude of growth opportunities. Major holdings here include iron ore producer Vale, energy giant Petrobras, and retailer Walmart de México y Centroamérica.

Bear in mind, though, that more than 70% of the trust is invested in cyclical sectors like raw materials and consumer goods. This could leave it particularly vulnerable to periods of economic weakness.

At 307p per share, BlackRock’s Latin American trust trades at a decent 12.2% discount to NAV per share. Meanwhile, its forward dividend yield is a huge 6.2%.

I like it, even though an ongoing charge of 1.13% is higher than that of many other investment trusts.

Baillie Gifford US Growth Trust

The Baillie Gifford US Growth Trust (LSE:USA) is another regional fund I think’s worth a close look from ISA investors. Its high weighting of market-leading global innovators provides plenty to get excited about, in my view.

Major US-listed shares here include Amazon, Meta, Nvidia, and Shopify, though it also holds stakes in private companies. Indeed, Elon Musk’s SpaceX venture represents its largest single holding (11.1% of the total fund).

Once again, this investment trust is well diversified, with holdings spread across nine sectors including information technology, consumer goods, industrials, and telecoms. With a large weighting of technology shares, too, it provides exposure to high-growth areas like cloud computing, artificial intelligence (AI), and e-commerce as well.

Today this Baillie Gifford trust looks dirt cheap. At 227p per share, it trades at a 10.3% discount to its NAV per share. That’s attractive value in my book, even though a US recession could dent near-term performance.

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