A dividend is defined as a distribution of reward from the company’s earnings to its shareholders. Investing in dividends is one of the slower and more patient approaches one may take when considering their investments. This type of investing belongs mostly to a more value-oriented approach, where traders look for stocks that are trading at a lower price than their intrinsic or book value shows.
Some of the most legendary investors, namely Warren Buffet, believe that every investor should reinvest dividends in order to increase the net worth. To that end, we present you with this list to help you identify some of the best dividend ETFs.
|VYM||Vanguard High Dividend Yield ETF||$104.82||28.49%|
|SDY||SPDR S&P Dividend ETF||$122.53||30.10%|
|DVY||iShares Select Dividend ETF||$114.87||37.62%|
|SCHD||Schwab U.S. Dividend Equity ETF||$75.81||39.82%|
|FVD||First Trust Value Line Dividend Index Fund||$40.37||27.79%|
|HDV||iShares Core High Dividend ETF||$96.87||15.57%|
|IDV||iShares International Select Dividend ETF||$32.14||23.71%|
|DEM||WisdomTree Emerging Markets High Dividend Fund||$44.87||18.58%|
|FDL||First Trust Morningstar Dividend Leaders Index Fund||$33.28||26.44%|
|RDIV||Invesco S&P Ultra Dividend Revenue ETF||$39.61||38.16%|
|FIHD||UBS AG FI Enhanced Global High Yield ETN||$227.95||50.29%|
|VYMI||Vanguard International High Dividend Yield ETF||$67.25||24.28%|
|DHS||WisdomTree U.S. High Dividend Fund||$78.68||23.38%|
|SDIV||Global X SuperDividend ETF||$13.54||19.19%|
|PEY||Invesco High Yield Equity Dividend Achievers ETF||$20.08||36.97%|
|DWX||SPDR S&P International Dividend ETF||$39.76||15.65%|
|DVYE||iShares Emerging Markets Dividend ETF||$38.07||16.64%|
|FGD||First Trust Dow Jones Global Select Dividend Index Fund||$25.60||38.75%|
|DIV||Global X SuperDividend US ETF||$19.67||27.73%|
|EDIV||SPDR S&P Emerging Markets Dividend ETF||$29.47||13.52%|
|FDVV||Fidelity High Dividend ETF||$37.99||37.45%|
|HDEF||Xtrackers MSCI EAFE High Dividend Yield Equity ETF||$24.36||15.67%|
|FDD||First Trust Stoxx European Select Dividend Index Fund||$14.54||31.46%|
|WDIV||SPDR S&P Global Dividend ETF||$67.46||24.90%|
|DTH||WisdomTree International High Dividend Fund||$39.79||15.74%|
|WBIY||WBI Power Factor High Dividend ETF||$27.03||41.44%|
|DEW||WisdomTree Global High Dividend Fund||$48.18||21.73%|
|FIDI||Fidelity International High Dividend ETF||$20.50||23.79%|
|DVYA||iShares Asia/Pacific Dividend ETF||$40.62||22.94%|
|HDAW||Xtrackers MSCI All World ex U.S. High Dividend Yield Equity ETF||$25.82||17.79%|
|EFAS||Global X MSCI SuperDividend EAFE ETF||$15.89||24.82%|
|SDEM||Global X MSCI SuperDividend Emerging Markets ETF||$11.92||12.14%|
|FID||First Trust S&P International Dividend Aristocrats ETF||$18.12||26.36%|
|VTI||Vanguard Total Stock Market ETF||$227.46||38.62%|
|VIG||Vanguard Dividend Appreciation ETF||$159.41||29.30%|
|VT||Vanguard Total World Stock ETF||$104.58||32.16%|
|DGRO||iShares Core Dividend Growth ETF||$51.53||31.59%|
|GUNR||FlexShares Morningstar Global Upstream Natural Resources Index Fund||$36.97||24.14%|
|NOBL||ProShares S&P 500 Aristocrats||$91.93||28.84%|
|FNDX||Schwab Fundamental U.S. Large Company Index ETF||$54.54||42.40%|
|PRF||Invesco FTSE RAFI US 1000 ETF||$160.25||42.14%|
|EFV||iShares MSCI EAFE Value ETF||$51.37||23.57%|
|FNDF||Schwab Fundamental International Large Company Index ETF||$32.74||31.59%|
|EFG||iShares MSCI EAFE Growth ETF||$109.11||23.47%|
|DON||WisdomTree US MidCap Dividend ETF||$41.49||41.07%|
|FNDA||Schwab Fundamental U.S. Small Company Index ETF||$52.41||59.01%|
|SPHD||Invesco S&P 500® High Dividend Low Volatility ETF||$43.57||30.10%|
|HEDJ||WisdomTree Europe Hedged Equity Fund||$77.75||24.00%|
|DGRW||WisdomTree U.S. Dividend Growth Fund||$61.33||29.63%|
|EMLP||First Trust North American Energy Infrastructure Fund||$24.12||19.23%|
|DXJ||WisdomTree Japan Hedged Equity Fund||$60.79||28.33%|
Factors To Consider Before Identifying Dividend ETFs
One of the first things to look for is the dividend dates. This is important to note since companies look at different time frames and dates to determine who qualifies for receiving the dividend payment. For instance, one should pay attention to such terms such:
- Announcement date – When the dividends are announced by the company
- Ex-dividend date – When the eligibility of dividend expires
- Record date – When the company decides who is eligible to receive a dividend
- Payment date – When dividend payments are issued
Furthermore, investors may want to look at companies that have strong cash holdings and low earnings expectations. The bottom line is that you should focus on companies that consistently deliver profitable growth.
Which ETFs should I pick?
As always, “one size fits all” doesn’t work in investing and trading business. Each trader should identify their own investing style.
In case you are looking to invest long-term, the value-oriented approach may be the best fit. The dividend returns may not be very high, but they should be consistent and reflect a healthy business. Those companies with higher dividends may also bring higher volatility and higher risks associated with their business.
Since dividend ETFs can be identified across the entire U.S. market, you may want to diversify your portfolio in order to limit your exposure to a particular industry or market.
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