When it comes to investing in dividend funds, there are a few trade-offs to be aware of. Of course, everyone is looking for low-cost dividend funds, and yet low-cost dividend funds usually mean passively managed exchange-traded funds or mutual funds. That’s fine, as long as the stocks held in these low-cost dividend funds aren’t terribly volatile, and the dividend yield is reasonable. That’s just one trade-off. Expenses are going to rise as you move into higher-yielding securities that require more active management. While there are some good low-cost dividend funds out there, it is these trade-offs that I want to highlight so that investors think a little more broadly about how to construct a proper portfolio. Still, if you’re looking for the absolute lowest possible fees for your low-cost dividend funds, that tries to also aim for a decent dividend yield, here are three suggestions.
If you’re looking for a straightforward choice as far as low-cost dividend funds go, consider iShares Core High Dividend ETF (NYSE:HDV). This has all of the mega Names you know and love, with the top 10 positions accounting for about 57% of the asset base. You can take an entirely different approach with the WisdomTree US Small-Cap Dividend ETF (NYSE:DES). This four-star Morningstar rated fund has an expense ratio of 0.38%, and it offers a 12-month yield of 2.9%. Fidelity Strategic Income Fund (MUTF:FSICX) is also a four-star Morningstar rated fund, with a yield of 3.33%. It is absolutely fair to argue that the 0.69% expense ratio doesn’t really qualify this bond-centered fund as one of the lowest-cost dividend funds in the universe. However, it is not out of line for funds of its ilk.
Source: InvestorPlace
Related Articles:
- 4 Stocks With A Strong Cash To Dividend Coverage
- Optimizing Your Asset Allocation
- Dividend Growth Stocks Are My Conviction
- 5 Stocks With A Low Debt To Total Capital
- Should You Sell A Dividend Stock After A Dividend Cut?
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
For long-term performance, investors should consider pivoting their portfolios toward stocks that deliver high and growing dividend payouts,...
-
Finding great long-term investments that will pay you dividends for years to come isn't always easy. Plenty of stocks offer high yields,...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Talk to the average financial advisor, and they’ll say there’s no way to earn a safe 12% yield on your investment these days. After all, ban...
-
Any company that can double its dividend over a five-year stretch is delivering rapid payout growth. To reach that target, the company would...
-
Dividend investors often get stuck with popular names in their portfolio, perhaps because these stocks are so often talked about that there&...
-
By any measure the stock market is overbought. With yields still at historic lows despite the increases in the federal funds rate, and the p...
-
Buying and holding great dividend stocks is a fantastic way for patient investors to achieve outsize returns over the long run. But not ever...
-
As regular readers know, cash cows constitute mature businesses. Because they have little in the way of growth prospects, these firms pay ou...
0 comments
Post a Comment
Post a Comment