Saturday, October 14, 2023

7 Best Dividend ETFs to Buy Now

Once again on the subject of investing for income, the latest on dividends from this week's edition of U.S. News Invested.  


OCTOBER 12, 2023

U.S. News & World Report

Invested

Advice, rankings and stock market news for investors.

Good morning, investors. Markets saw slight gains on Wednesday, and Americans could be in for lower heating bills this winter.

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

7 Best Dividend ETFs to Buy Now
What the Israel War Means for Oil Prices and Stocks
7 of the Best Tax-Free Municipal Bond Funds
Stock Market Sectors 101: A Guide to All 11 Sectors

TODAY'S FEATURED STORY

7 Best Dividend ETFs to Buy Now


With the stock market suffering a rough go of things lately and conflict again flaring up in the Middle East, it seems that the go-go days from early 2023 may now be behind us. That has caused some investors to move away from riskier stocks toward solid dividend payers.

Dividends are a great way to provide income when you're in retirement, but also a hedge against declines if you're still getting started with your nest egg. Not only does the regular stream of payouts offset any modest decline, but dividend stocks are fundamentally more stable than small caps or startups because they have to have significant profits to bankroll those dividends in the first place.

The following picks are among the best dividend ETFs to buy now. All but one offer monthly paydays, and all have a yield that is significantly higher than the 1.6% or so offered by the S&P 500 at present.

Vanguard Dividend Appreciation ETF (ticker: VIG). The largest dividend-focused ETF as measured by assets, VIG is a simple and cost-effective way to play the largest income-producing stocks. It holds about 300 of the largest U.S. corporations, led by trillion-dollar Silicon Valley giants like Apple Inc. (AAPL) and Microsoft Corp. (MSFT).

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ETF  ASSETS   EXPENSE RATIODIVIDEND YIELD (AS OF OCT. 10 CLOSE)

Vanguard Dividend Appreciation ETF (ticker: VIG)$78.8 billion0.06%                                                                 2%

Vanguard High Dividend Yield ETF (VYM)$59.4 billion0.06%                                                              3.3%

Schwab U.S. Dividend Equity ETF (SCHD)$47.6 billion0.06%                                                              3.7%

iShares Core Dividend Growth ETF (DGRO)$22.8 billion0.08%                                                              2.6%

Vanguard International High Dividend Yield ETF (VYMI)$6.8 billion0.22%                                           4.6%

Global X SuperDividend ETF (SDIV)$746.9 million0.58%                                                           12.9%

Alerian MLP ETF (AMLP)$7.1 billion0.85%             7.6%

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