Investing in dividend-paying stocks has many advantages. A company that consistently pays dividends over many quarters is considered financially healthy with consistent cash flow. Dividend-paying companies tend to be blue chip names that are less volatile than most publicly traded companies. If held long enough, the amount of cash flow that is earned from compounding can often be sizable enough that the distributions are often used by retirees as their primary source of income.
For investors looking for an opportunity to increase exposure to dividend-paying stocks, look no farther than the Vanguard High Dividend Yield Index ETF (NYSE:VYM). This ETF has an ultra-low expense ratio of 0.10%, which, according to Vanguard, is 91% lower than the average expense ratio of funds with similar holdings. This ETF consists of 391 stocks and has total net assets of $10.9 billion. Another great option for investors looking to add dividend-paying ETFs to their portfolios is the iShares Select Dividend ETF (NYSE:DVY). This ETF is equipped with a 0.40% management fee, which is reasonable given that the managers attempt to give holders access to the top 100 dividend-paying domestic stocks based on a five-year history of dividend growth.
Source: Investopedia
Related Articles:
- 6 Stocks With a Sustainable Dividend
- 5 Dividend Stocks Building A Growing Cash Stream
- 9 Dividend Stocks Beating The 4% Rule
- How To Buy Dividend Stocks At The Bottom
- 8 High-Yielding Dividend Aristocrats Not Afraid to Raise Their Dividends
Two Dividend ETFs You Need To Know
Posted by D4L | Sunday, May 18, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.