https://money.usnews.com/investing/funds/slideshows/9-best-dividend-etfs-to-buy-now?src=usn_invested_nl9 Best Dividend ETFs to Buy Now
Sept. 6, 2018
Many investors look to exchange-traded funds as tactical ways to position their portfolio. But the ETF universe includes many low-cost, diversified dividend funds that can really take your income investing strategy to the next level.
These dividend funds are great for novice investors, as well as a way to cut out hassle for veterans with a specific income goal. Picking individual dividend payers can require a lot of research, and often leaves you at the mercy of one bad earnings report or other unfortunate headline.
However, these nine funds all offer slightly different ways to invest for dividends in a diversified and low-stress way.
1. Vanguard Dividend Appreciation ETF (ticker: VIG). With some $36 billion in total assets under management, VIG is the largest and one of the cheapest ways to get diversified access to a large basket of dividend stocks, with an expense ratio of 0.08 percent or a mere 80 cents annually on every $1,000 invested.
The fund requires holdings to have at least 10 consecutive years of dividend growth and its components form a who’s who of dividend payers. Top holdings include Microsoft Corp. (MSFT), Johnson & Johnson (JNJ) and Walmart (WMT). Some of these picks don’t yield an amazing amount, but their stability is unrivaled.
2. ProShares S&P 500 Aristocrats (NOBL). Taking the notion of dividend achievers one step farther is a list of dividend aristocrats, the fancy name for a corporation that has increased its distributions at least once a year for 25 consecutive years. This milestone is particularly noteworthy in 2018, since the 25-year window spans two severe market downturns where many weaker corporations couldn’t maintain their dividends, let alone increase them.
Holdings include familiar names like cleaning products giant Clorox Co. (CLX) and retailer Target Corp. (TGT) as well as some unsung dividend payers like Emerson Electric Co. (EMR) and industrial conglomerate Dover Corp. (DOV). – Jeff Reeves
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