The explosion in the number of exchange-traded funds is both good and bad. The good is obvious -- investors have more choice than ever before. The bad is that the boom has created hundreds of ETFs, some with just one twist that makes them ever so slightly different than another fund on the market. The boom is especially apparent in the hunt for dividend yield. To create the highest ETF yield, dividend stocks are becoming increasingly lumped together with no regard for quality. Dividend aristocrats are frequently combined with riskier alternatives. The best dividend ETF should offer a safe and reliable yield, like the funds below...
Vanguard High Dividend Yield ETF (NYSEMKT:VYM)tracks the FTSE High Dividend Yield Index, a diversified index of high-yielding American stocks. Though it isn't actively managed, the index does have some thoughtful features that have helped it outperform indexes over multiyear periods.iShares U.S. Preferred Stock ETF (NYSEMKT:PFF) fits the bill of offering relatively safe and reliable income, but with a yield higher than the stock market index. The fund yields about 5.8%, roughly 3.7 percentage points more than S&P 500 index funds, and carries a fair expense ratio of 0.47% of assets. Vanguard Dividend Appreciation ETF (NYSEMKT:VIG) tracks the NASDAQ U.S. Dividend Achievers Select Index, which includes stocks that have grown their dividends for 10 years in a row or more. It broadly excludes real estate investment trusts and limited partnerships from the index.
Source: Motley Fool
Related Articles:
- 12 Under-Valued Dividend Stocks
- Successful Investors Take The Emotion Out
- 7 Higher Yield Dividend Growth Stocks
- 8 Select High-Yield S&P 500 Dividend Stocks
- A Winning Investment Strategy
________________________________________________________________
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...
-
Boring stocks to buy and hold almost always align with deeply established businesses. While they won’t offer the outstanding growth potentia...
-
Did you know that if a company were to increase its dividends by 5% per year, it would take 14 years for its payouts to double? And if its r...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
While there are many paths investors can take to generate long-term wealth, our preferred method is to buy-and-hold quality dividend stocks ...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
While it is prudent to build a more robustly diversified portfolio than just three stocks, the three discussed in this article are sure to g...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
-
Linked here is a detailed quantitative analysis of Texas Instruments Inc. (TXN). Below are some highlights from the above linked analysis: C...
-
Countless people dream of being able to pay their bills with the cash they receive from their investments. But it doesn't have to be jus...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.