If you're wishing you had a little more exposure to income investments right now and a little less exposure to growth, you're not alone. The market's recent shellacking hasn't exactly been uniform; growth stocks have really taken it on the chin. And their sell-off may not be over yet. The good news is, it's not too late to start shifting more of your portfolio into dividend-paying positions. You don't even have to do any stock picking to make this happen, either. This trio of exchange-traded funds (ETFs) can do the job in a snap. Here's a closer look at each.
If your goal is producing above-average dividend income right now, your first stop should arguably be the iShares High Dividend Equity Fund (HDV 1.48%). Just as the name implies, this iShares fund seeks to maximize your payout by choosing stocks with superior dividend yields. If you're more interested in long-term dividend growth than current income levels, consider the Vanguard Dividend Appreciation ETF (VIG 1.87%). Once again, the name says it all. Finally, add the SPDR S&P 500 High Dividend ETF (SPYD 1.43%) to your list of ETFs to consider if you're looking to add passive income potential to your portfolio. At first glance it seems comparable to the aforementioned iShares High Dividend Equity Fund. And there's some overlap, to be sure. But there's more difference between the two than it seems on the surface. The SPDR S&P 500 High Dividend ETF is arguably the more aggressive option.
Source: Motley Fool
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While wagering on a single high-growth stock often features the greatest reward potential, such a targeted order could easily go awry. That’s why exchange-traded funds (ETFs) offer a viable tool for risk-averse investors, allowing buyers to distribute downside threats across a wide surface area. In the same vein, people should consider adding dividend ETFs to buy for their portfolios.
As rising inflation takes a bite out of household purchasing power, these dividend ETFs could help mitigate the crisis.
SPDR S&P Dividend ETF (SDY): Features a healthy portfolio of relevant big blue chips. ProShares S&P 500 Dividend Aristocrats ETF (NOBL): Geared toward established secular businesses, NOBL may prove resilient. iShares Core High Dividend ETF (HDV): Focusing on higher yields, HDV is also one of the better-performing dividend ETFs this year.
Source: InvestorPlace
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Readers may want to do a stock valuation on the stocks in their favorite sectors and wait patiently until they become cheap. Patience is a virtue! It’s best to cast a wide net by finding as many stocks as possible that could potentially become the best cheap dividend stocks. Then keep an eye on your stocks until you’re ready to buy. In the meantime, here are a few stocks to consider.
Merck (NYSE: MRK): Merck is one of the largest drug companies in the U.S. Merck’s drugs treat cancer, HPV and animal health. The company also has many drugs awaiting approval. Merck has grown sales and earnings per share over the last several years. In addition, it has a P/E ratio of just over 16x. The stock pays a healthy dividend yield of about 3.26%. The Home Depot (NYSE: HD): Home Depot is one of the leading home improvement chains in the US. Customers range from DIY folks to construction crews. Though the stock rose dramatically during COVID-19 stay-at-home restrictions, the stock has pulled back so far in 2022. Currently, the stock pays a dividend yield of about 2.5%, and it has a P/E ratio of less than 20x.
Source: Investment U
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We picked up two investments that carry excellent yields combined with some healthy upside in the share price. We also dropped one of our positions. Despite this being an extremely difficult period for high-yield investors, we earned over 11% in a little over a month. Why are so many investors afraid to make money? To make it even easier for you, I'm providing several alternatives that are also attractively priced. We already own most of them.
As the sector remains wild with far more price volatility than fundamentals can justify, we continue to bring ideas for investors. In this piece I want to share one of our latest trades for the sector. This trade enabled us to capture a healthy gain, but it also let us redeploy the capital into some great shares that were thrown on the sale rack. Trades Placed: Sold all 373 shares of Ares Capital (ARCC) at $22.3745 per share. Purchased 591 shares of MFA-B (MFA.PB) at $23.7144 per share.
Purchased 163 shares of MFA-C (MFA.PC) at $22.1163 per share.
Source: Seeking Alpha
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If you have contemplated selling shares of some of the companies you own this year, you likely aren't alone. Considering how volatile the market has been, many investors find it hard to look beyond the current headwinds and focus on the long game. But no matter how tempting panic selling is, it is rarely (if ever) the correct move.
The buy-and-hold strategy remains king for those looking to beat the market in the long run. It's especially wise to turn to dividend stocks since they have historically outperformed their non-dividend-paying peers. On that note, let's look at two excellent dividend stocks that you can buy and hold forever: AstraZeneca ( AZN -2.27% ) and Merck ( MRK -1.90% ).
Source: Motley Fool
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