ETFs and mutual funds are great for total-return investing, but for a flow of dividend income that grows, stocks look better. Dividend-growth investing provides a steady, rising income, it offers good capital-gains potential, and it offers very competitive returns in all kinds of markets.
But it's tough to harness dividend growth if you're an investor who has a small account, and is thus better served by mutual funds or exchange-traded funds than individual stocks. It's worth noting that you can buy any number of shares you want—forget about having to buy "board lots" of 100 shares. The lesson here seems to be that ETFs aren't ideal for generating a steadily growing stream of dividend income. You can get more dividends from year to year, but you can also get less.
Source: Money Show
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- 10 Dividend Stocks Delivering A Quick Payback
- Where To Find Great Dividend Stocks
- 8 Dividend Stocks With Above Market Performance
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