The stock market has been changing more than the weather lately and studies show that this trend in high variability is not likely to end any time soon.
For instance, one day after President Donald Trump revealed that he would put import tariffs on steel and aluminum, the volatility index (VIX) jumped up. Well-known stocks like Dow DJIA and S&P 500 ended that week with notable losses.
Exchange-traded funds (ETFs) could be the answer to your prayers. They offer high-profit returns with much less volatility than traditional stocks.
Read on for a great list of companies to look at if you are considering adding a high dividend ETF to your portfolio.
What Is a High Dividend ETF?
Exchange-traded funds are traded like a regular stock on the stock market but they follow trends based on certain index funds, commodities, or bonds.
You can buy as little as you want in an ETF because there is no minimum deposit and they usually have low expense ratios.
The best part is that they tend to yield profits for shareholders, even in a volatile market like we are seeing this year.
An ETF is a great thing to include in your personal financial plan and investment portfolio.
Vanguard Dividend Appreciation ETF- Vig :
Vanguard is an ETF has 179 holdings including PepsiCo Inc., Microsoft Corp., and Johnson & Johnson.
They are trying to match the pattern of the NASDAQ U.S. Dividend Achievers Select Index. This particular index has been increasing their annual dividend payments to investors for the past 10 years!
This exchange-traded fund is a common man’s ETF because of its proven payout record as well as the number of well-known company names on the list of its holdings.
First Trust NASDAQ Rising Dividend Achievers ETF- RDVY :
This is another high dividend ETF that seeks to emulate the track of the NASDAQ U.S. Dividend Achievers Select Index.
They only have 50 holdings, but some of those holdings include top companies such as Williams-Sonoma, Inc., Hewlett Packard Enterprise Company, Best Buy Co., and Intel Corporation.
For 2017, they boasted impressive returns of 22.07%.
iShares Core Dividend Growth ETF- DGRO :
If you really want to diversify your portfolio, why not look at Japan ETFs? One of the best performing Japanese ETFs lately is iShares Core.
This ETF attempts to follow the trends on the Morningstar U.S. Dividend Growth Index instead of the NASDAQ.
iShares invests in U.S. equities that tend to have high-dividend yield. They also choose equities from different kinds of industries so they can almost guarantee a high payout.
Their 2017 returns were 22.41%, so that plan looks like it is working for them!
WisdomTree U.S. Quality Dividend Growth Fund- DGRW :
The best one-year returns we found were with Wisdom Tree at 26.77%.
They choose to invest in U.S. growth stocks that have a record of producing high dividends.
We pick this one as the best high dividend ETF because it’s growth probability is huge!
They have over 300 holdings that all have a very high dividend ceiling. An investment in this exchange-traded fund could produce high dividends for you for many years.
If you have more questions about ETFs and other stock investments, contact us today!
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