With Treasury interest rates expected to stay at near-zero levels for the foreseeable future, many investors have found it challenging to secure meaningful yields from asset classes that were once the core of income strategies.While finding high-yielding investments is a difficult task, it certainlyisn'timpossible. There are dozens of dividend ETFs (and ETNs) that offer potential for some big payouts. From ETFs linked to dividend-weighted indexes to those that screen components by consistency of distributions, the choices are numerous-and increasingly popular .


Two Key Strategies

The graphic below compares two dividend income strategies; the first three ETFs focus on firms with consistent payouts that have grown over the last decade or more, while the funds in the second half of the listfocus only on those companies that have the highest yield. Both strategies can be highly beneficial to investors and neither areuniversally superior to the other; the suitability of these funds depends on the client.

  • Dividend Appreciation ETF
  • Morningstar Dividend Leaders Index Fund
  • SPDR S&P Dividend ETF
  • S&P Global Dividend Opportunites Index ETF
  • SuperDividend ETF
  • KBW Premium Yield Euity REIT Portfolio

If used properly, both styles of dividend investing can be very powerful tools. But if used incorrectly these products have the potential to deliver too little yield or too much risk.

Disclosure: No positions at time of writing.

You May Also Like

COMPANIES IN THIS ARTICLE
Related Analysis
  1. Investing Basics

    Bitcoin ETFs: How Do They Work?

  2. Stock Analysis

    Exxon, Chevron Prep Street For Ugly Earnings With Nixed Projects

  3. Mutual Funds & ETFs

    ETF Analysis: Energy Select Sector SPDR

  4. Stock Analysis

    Banking Is Big...A Little Too Big. Here's Why.

  5. Economics

    What to Expect from Russia's Oil-Dependent Economy

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!