Everyone loves easy money, right? Well, of course and there is no easier money in the investment world than dividends. In case you been living under a rock a dividend is a share of a company, or in this case companies, profits that get kicked back to the investors. Partially as a way to say thanks (and keep the peace between management and shareholders) and partially as a way to spur extra investment from outside investors. Instead of solely relying on stock appreciation, sometimes based on factors outside of profits. You can now rest a little bit easier if the companies you are getting dividends from have raising profits.
Now that you’re, at least partially knowledgeable about dividends, you probably are wondering what dividend producing stocks to buy, and that right there is the problem. The number one rule for investing is to diversify your portfolio as much as possible. Which could potentially be hard for dividend stocks, but fear not there is a very practical solution, buying dividend funds. These funds grab all sorts of different companies and gather them up into nice, neat ETF’s that you can buy, even with a Robinhood account. And without further ado let’s name off some great dividend funds you can buy, right now.
1. $PGX: PowerShares Preferred Portfolio This gets my top spot because of the massive 5.46% return and the relatively stable price action that has been seen of the past year or so (appreciating in value by 2.4%).
2. $VYM: Vanguard High Dividend Yield ETF : You know a Vanguard product was going to end up on this list. This dividend boasts a 2.43%, steady asset appreciation in the past year. Also this ETF is focused on large cap stocks, so it also comes with the stabilitiy of being made up of trusted companies.
3. $NOBL: Dividend Aristocrats ETF: Probably the most famous dividend ETF in my mind (probably this was the first dividend ETF that I had ever head of). The dividend yield is a little lower than some other ETF’s on this list at 1.43%. However it boasts significant asset appreciation being up 9.44% over the past year.
4. $SDY SPDR S&P Dividend ETF: This is an example of a win-win. This dividends gives you 2.40% back in dividends every year and you also get the benefit of asset appreciation because all of these stocks are in the S&P 500.
In conclusion there are plenty of investment tools out there to get you where you want to be financially. However if you’re looking for modest asset appreciation, dividend returns and diversification, then take a look at dividend ETF’s.
Disclaimer: This should not be considered financial/investment advice and I am not a financial advisory or investment professional. All investment decisions should be made with the help of an investment professional, and the person making the investment should do their own research. In addition I hold none of the assets/ETF’s/stocks that were listed in this article.