Top 10 dividend ETFs to buy

Top 10 dividend ETFs to buy

Duke Guevara

Every investor hopes to get great returns and make large profits in the stock market. An investor’s principal objective is to earn profit from an increase in the value of their holdings in a company’s stock. Dividend ETF offers a simple and effective means of generating income and increasing profits. A dividend ETF is an exchange-traded fund (ETF) structured to invest in a portfolio of dividend-paying stocks. Here are the top 10 high-yield ETFs to buy.

List of the top 10 dividends ETFs to buy
First Trust Morningstar Dividend Leaders Index Fund (FDL)
The First Trust Morningstar Dividend Leaders Index comprises NYSE, NYSE Amex, or Nasdaq-listed businesses that have demonstrated high dividend consistency and sustainability. Dividend payments on these securities have been reliable and sustainable in the past and continue to perform well.

WisdomTree U.S High Dividend Fund WisdomTree (DHS)
WisdomTree U.S. High Dividend Index is a collection of dividend-paying businesses ranked according to their expected dividend payments for the upcoming year and other variables like value, quality, and momentum. However, the index does not include businesses with a market worth under $200 million.

iShares Core High Dividend ETF (HDV)
The iShares Core High Dividend ETF (HDV) records the performance of an index made up of stocks in the country that pay relatively high dividends. The expenditure ratio of HDV is 0.08%, and the SEC yield is 4.67 percent.

Vanguard Dividend Appreciation ETF (VIG)
The Vanguard VIG fund is Wall Street’s biggest and most widely used dividend ETF. It manages a whopping $59 billion in assets. This makes VIG one of the leading funds in the list of the top 10 high-yield ETFs. The average price-to-earnings ratio of the portfolio’s stocks is 18.2, while the average price-to-book ratio is 3.3.

Schwab U.S. Dividend Equity ETF (SCHD)
Schwab U.S. Dividend Equity ETF (SCHD) yields much more by taking a unique route to large-cap dividend equities. (TXN). The SEC yield for SCHD is 3.4%, and the expense ratio is 0.06%.

Global X SuperDividend ETF (SDIV)
SDIV has by far the highest yield of any fund on this list, grabbing the first spot in the top 10 high-yield ETFs to buy. At least 80% of the fund’s total assets are invested in securities that comprise the underlying index or in ADRs or GDRs. The index’s base value is a weighted average of 100 stocks that pay dividends and are in the top 1% of all companies globally.

MLP Alerian ETF (AMLP)
Alerian Fund emphasizes master limited partnerships, or MLPs, in the energy industry, especially in energy generation, transmission, storage, and distribution. The fund’s investments span market caps, focusing on high growth and value.

High Dividend SPDR Portfolio S&P 500 ETF (SPYD)
Investors who want to speculate on the performance of the highest-yielding stocks in the S&P 500 index can find SPYD valuable. Interestingly, the fund doesn’t use standard market-cap weights. SPYD has only 80 stocks, with Principal Financial Group Inc. (PFG) being the largest, weighted at 1.7%. The expense ratio for SPYD is 0.07%, and the 30-day SEC yield is 4.50%.

Low Volatility Invesco S&P 500 High Dividend ETF (SPHD)
SPHD is perfect for investors seeking lower risk. It consists mostly of stocks in consumer staples and utilities, which enjoy relatively stable demand regardless of the economic cycle. Kinder Morgan (KMI), Altria (MO), AT&T Inc.(T), and Gilead Sciences Inc. (GILD) are among the top holdings. SPHD’s 30-day yield from the SEC is 4.50%, while the cost ratio is only 0.30%.

High Dividend Yield Vanguard (VYM)
This Vanguard dividend ETF follows the performance of the FTSE High Dividend Return Index. In terms of industry representation, VYM is 20% financials, 15% healthcare, and 12% consumer staples. The 30-day SEC yield for VYM is 2.9%, the estimated annualized yield for an investor based on a trailing 30-day period.

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