Sunday, August 6, 2023

7 of the Best High-Dividend ETFs

Tonight, for those of you preferring lower-risk investments, here is the latest list of quality high-dividend ETFs.  Hope you all enjoyed this beautiful weekend.  



AUGUST 4, 2023

U.S. News & World Report

Invested

Advice, rankings and stock market news for investors.

Happy Friday, investors! Bond yields soar and stocks struggle to reboot after Fitch downgraded the U.S. credit rating.

Highlights of today's newsletter include our market insights plus these new articles:

7 of the Best High-Dividend ETFs
7 Best Money Market Funds for 2023
6 of the Best Cryptocurrencies to Buy Now
6 Funds to Add to Your HSA
9 Charts Showing Why You Should Invest Today

TODAY'S FEATURED STORY

7 of the Best High-Dividend ETFs

With stocks like chipmaker Nvidia Corp. (ticker: NVDA) and Facebook parent Meta Platforms Inc. (META) putting up 100%-plus returns this year, it's understandable that some investors have overlooked dividend stocks in 2023. But before you write off any income play as a boring and sluggish alternative to high-octane tech stocks, remember that slow-and-steady often wins the race over the long term.

That's in part because high-reward stocks often carry higher risks, and can move down as quickly as they charge higher. But it's also because of a concept known as "total return," which involves more than simply looking at share price returns. For instance, if a high-dividend ETF delivers 10% share appreciation as well as 10% dividends, you are actually twice as far ahead. If you're interested in income as a driver of profits, these high-dividend ETFs are worth a look. All have delivered more than 10% returns year to date, and all have yields that are 3% or better:

JPMorgan BetaBuilders Europe ETF (BBEU). While there are a host of differences between U.S. companies and their counterparts on the other side of the Atlantic, a big one is the fact that many of these stocks pay much more generous dividends to shareholders. They're also global names you probably recognize, such as consumer giant Nestlé SA (NSRGY) and Big Pharma mainstay AstraZeneca PLC (AZN). If you're looking for geographic diversification and a bit more yield, you can get both in the list of about 450 world-class companies that make up BBEU.

Assets: $7.5 billion
Yield: 3.1%

Fidelity High Dividend ETF (FDVV). This Fidelity fund is one of the best high-dividend ETFs out there for investors who aren't looking for a particularly complicated or strategic option. FDVV owns about 100 dividend-paying stocks that represent the largest names on Wall Street – Procter & Gamble Co. (PG), Microsoft Corp. (MSFT) and JPMorgan Chase & Co. (JPM) among them. The yield is one of the smallest you'll find on this list, but it's hard to argue with the simple nature of this fund and its reliance on some of the biggest and most entrenched companies in the world.

Assets: $1.6 billion
Yield: 3.5%

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