World Stock Watch

Unlock the Power of Dividend Investing

As someone who’s benefited greatly from dividend investing, I’m excited to share with you the potential of generating passive income through exchange-traded funds (ETFs). Whether you’re just starting out or looking to boost your investment portfolio, dividend-focused ETFs can provide a steady stream of income that grows over time.

Getting Started with Just $1,000

You don’t need a fortune to invest in dividend-paying stocks. With as little as $1,000, you can start building a portfolio that generates passive income. And the best part? You can do it with minimal effort and risk.

10 Promising Dividend ETFs to Consider

Here are 10 dividend-focused ETFs that can deliver consistent income and growth over the long term:

• JPMorgan Equity Premium Income ETF (JEPI): 9.00% recent yield, with a unique approach that combines U.S. stocks with call options.
• iShares Preferred & Income Securities ETF (PFF): 6.00% recent yield, focused on preferred stocks with relatively high dividends.
• Schwab U.S. Dividend Equity ETF (SCHD): 3.64% recent yield, tracking the Dow Jones U.S. Dividend 100 Index.
• Fidelity High Dividend ETF (FDVV): 2.71% recent yield, holding over 100 medium-sized and large companies with a history of paying dividends.
• Vanguard High Dividend Yield ETF (VYM): 2.67% recent yield, tracking the FTSE High Dividend Yield Index.
• SPDR S&P Dividend ETF (SDY): 2.26% recent yield, requiring component companies to have increased their payouts annually for at least 20 consecutive years.
• iShares Core Dividend Growth ETF (DGRO): 2.24% recent yield, focused on companies with relatively rapidly growing dividends.
• Vanguard Dividend Appreciation ETF (VIG): 1.68% recent yield, tracking an index of U.S. stocks with a history of consistently growing dividends.
• First Trust Rising Dividend Achievers ETF (RDVY): 1.49% recent yield, focused on companies that have been paying growing dividends and seem healthy enough to continue doing so.
• Vanguard S&P 500 ETF (VOO): 1.22% recent yield, a broad-based index fund that includes many dividend-paying companies.

What to Look for When Choosing a Dividend ETF

As you explore these options, consider the following factors:

• Yield vs. Growth: Do you prioritize high yields or steady growth?
• Expense Ratios: Look for funds with low fees, under 0.10%.
• Availability: Check if the funds are available in your workplace 401(k) plan or through a brokerage account.

By investing in dividend-focused ETFs, you can create a steady stream of passive income that grows over time. Start with just $1,000 and watch your wealth grow!