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?
3 Top Low-Cost Dividend Funds to Buy
Posted by D4L | Friday, April 20, 2018 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
The best dividend stock nobody is talking about is an undervalued, high-dividend chemical company poised to grow at an exponential rate. Wit...
-
If any investor has stood the test of time, it is Warren Buffett. For years, the “Oracle of Omaha” has had a rock-star-like presence in the ...
-
A full-blown recession, or the late-year rally in Wilson’s view – the natural move for investors will be toward defensive stocks, moves to p...
-
The Dividend Kings, which are those stocks with at least 50 years of dividend growth, is an excellent place to find high quality names. Ther...
-
This company has raised its dividend for 62 years straight. Dividend stocks are an excellent way to build your wealth over time. According t...
-
When it comes to valuation, most investors fall back on things like the price-to-earnings (P/E) ratio. Earnings are too variable for me, so ...
-
Investors need to seek out stocks of established companies that have a track record of delivering consistent, reliable returns to shareholde...
-
Investing in dividend growth stocks is an excellent strategy to build sustainable wealth for the long haul. This is because only the best st...
-
Downturns are a great time to load up on high-quality dividend stocks. Falling share prices pump up dividend yields, and that means you'...
-
We've got 3 picks with dividend yields from 7.5% to 13.1%. Each share also has a significant discount to either projected current book v...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.