Yahoo Finance 5 Market-Beating High-Dividend ETFs to Consider
Investing in high dividend stocks can be an excellent strategy for investors seeking regular income from their investments. These types of stocks typically pay out a higher percentage of their profits as dividends than other stocks, which means that they can provide a steady source of income for investors.
There are a few key factors to consider when investing in high dividend stocks. An important factor to consider is the company's financial health. High dividend stocks can be risky if the company is not financially stable. It's important to look at the company's debt levels, earnings growth, and cash flow to determine whether they are in a strong financial position to continue paying dividends.
In addition to that factor, it's also important to consider the overall market conditions. High dividend stocks can be a good investment during times of economic uncertainty, as they provide a steady source of income regardless of market conditions.
One strategy for investing in high dividend stocks is to create a diversified portfolio that includes a mix of different types of companies. This can help to minimize risk and provide a more stable source of income over time.
ETFs in Focus
Against this backdrop, below we highlight a few high-dividend ETFs that beat the S&P 500 in the past one month (up 1.98%). These ETFs have a P/E less than the S&P 500 (17.86X). These ETFs also yield higher than the benchmark U.S. treasury yield (3.43%) as of Apr 26, 2023.
Franklin International Core Dividend Tilt Index ETF DIVI – Up 5.9%; Yield: 4.05%; P/E:8.35X
The underlying Morningstar Developed Markets ex-North America Dividend Enhanced Select Index is a systematic, rules-based proprietary index and aims to deliver a higher dividend yield than the Morningstar Developed Markets ex-North America Target Market Exposure Index. The fund charges 9 bps in fees.
Europe takes about 60% of the fund, followed by Asia (25.6%). Financials (20.25%), Healthcare (13.60%) and Consumer Discretionary (11.33%) make up the top three sectors of the fund. No stock accounts for more than 2.08% of the fund.
First Trust Dow Jones Global Select Dividend Index Fund (FGD) – Up 4%; Yield: 5.69%; P/E:6.30X
The underlying Dow Jones Global Select Dividend Index is an indicated annual dividend yield weighted index of 100 stocks selected from the developed-market portion of the Dow Jones World Index. The fund charges 56 bps in fees.
Canada (12.64%) and South Korea (11.41%) are the top two geographies. Financials (32.59%), Industrials (13.18%) and Materials (10.91%) make up the top three sectors of the fund. No stock accounts for more than 3.18% of the fund.
SPDR S&P Global Dividend ETF WDIV – Up 3.8%; Yield: 5.10%; P/E:10.84X
The underlying S&P Global Dividend Aristocrats Index measures the performance of high dividend-yield companies included in the S&P Global BMI that have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years. The fund charges 40 bps in fees.
Canada (21.52%) and United States (18.89%) are the top two geographies. Financials (25.73%), Real Estate (17%) and Utilities (12.26%) make up the top three sectors of the fund. No stock accounts for more than 1.64% of the fund.
SPDR Portfolio S&P 500 High Dividend ETF SPYD – Up 3.7%; Yield: 4.59%; P/E:11.68X
The underlying S&P 500 High Dividend Index is designed to measure the performance of the top 80 dividend-paying securities listed on the S&P 500 Index, based on dividend yield. The fund charges 7 bps in fees.
Real Estate (21.66%), Financials (17.1%) and Utilities (14.4%) make up the top three sectors of the fund. No stock accounts for more than 1.55% of the fund.
Invesco S&P 500 High Dividend Low Volatility ETF SPHD – Up 3.6%; Yield: 4.12%; P/E: 13.30X
The underlying S&P 500 Low Volatility High Dividend Index comprises of 50 securities traded on the S&P 500 Index that historically have provided high dividend yields and low volatility. The fund charges 30 bps in fees. Real Estate (18.20%), Utilities (17.7%) and Consumer Staples (13.6%) make up the top three sectors of the fund. No stock accounts for more than 3.36% of the fund.
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SPDR S&P Global Dividend ETF (WDIV): ETF Research Reports
Invesco S&P 500 High Dividend Low Volatility ETF (SPHD): ETF Research Reports
First Trust Dow Jones Global Select Dividend ETF (FGD): ETF Research Reports
SPDR Portfolio S&P 500 High Dividend ETF (SPYD): ETF Research Reports
Franklin International Core Dividend Tilt Index ETF (DIVI): ETF Research Reports
