High Dividend ETFs
Taking into account extremely growing popularity of exchange-traded funds (ETFs) and the proven benefits of dividend investing strategies, it becomes important to explore ETFs focused on dividends for private investor.High dividend ETFs primarily hold a basket of dividend-paying stocks and pay out a dividend at regular intervals
List of top 25 high-dividend ETFs
Below is a list of 25 high-dividend ETFs, ordered by dividend yield.
Global X SuperDividend ETF
iShares Emerging Markets Dividend ETF
Global X MSCI SuperDividend Emerging Markets ETF
Global X SuperDividend U.S. ETF
Global X MSCI SuperDividend EAFE ETF
First Trust Dow Jones Global Select Dividend Index Fund
WBI Power Factor High Dividend ETF
WisdomTree Emerging Markets High Dividend Fund
iShares International Select Dividend ETF
iShares Asia/Pacific Dividend ETF
First Trust Stoxx European Select Dividend Index Fund
SPDR S&P Global Dividend ETF
First Trust S&P International Dividend Aristocrats ETF
Fidelity International High Dividend ETF
Invesco S&P Ultra Dividend Revenue ETF
SPDR S&P Emerging Markets Dividend ETF
Xtrackers MSCI All World ex U.S. High Dividend Yield Equity ETF
Invesco High Yield Equity Dividend Achievers ETF
WisdomTree International High Dividend Fund
Virtus WMC International Dividend ETF
WisdomTree Global High Dividend Fund
Xtrackers MSCI EAFE High Dividend Yield Equity ETF
First Trust Morningstar Dividend Leaders Index Fund
Vanguard International High Dividend Yield ETF
WisdomTree U.S. High Dividend Fund
Data current as of Dec. 5, 2020.
How to chose high dividend ETFs to invest
There are hundreds of high dividend ETFs traded at global markets. ETF typically includes dozens, if not hundreds, of above average paying dividend stocks. Of coursw ir provides sort of diversifications, but does nor guarantee constant passive income.
Here’s how to buy a dividend stock ETF:
1. Find a broadly diversified dividend ETF. You can typically find dividend ETFs by searching for them on your broker’s website.
Probably the safest choice is a low-cost fund that picks dividend stocks from the S&P 500 stock index. That offers a broadly diversified package of top U.S. companies.
2. Analyze the ETF. Make sure the ETF is invested in stocks (also called equities), not bonds. You’ll also want to check the following:
The dividend yield. This is how much a company pays out in dividends each year relative to its share price, and is usually expressed as a percentage.
5-year returns. Generally, higher is better.
Expense ratio. This is the ETF’s annual fee, paid out of your investment in the fund. Look for an expense ratio that is under 0.50%, but lower is better.
Stock size. Dividend ETFs can be invested in companies with large, medium or small capitalization (referred to as large caps, mid caps and small caps). Large caps are generally the safest, while small caps are the riskiest.
3. Buy the ETF. You can buy ETFs just like you’d buy a stock, through an online broker. A good approach is to buy them regularly, to take advantage of dollar-cost averaging.