The 3 Best ETFs for Dividends | Smart Change: Personal Finance | – Arizona Daily Star

If you’re wishing you had a little more exposure to income investments right now and a little less exposure to growth, you’re not alone. The market’s recent shellacking hasn’t exactly been uniform; growth stocks have really taken it on the chin. And their sell-off may not be over yet.

The good news is, it’s not too late to start shifting more of your portfolio into dividend-paying positions. You don’t even have to do any stock picking to make this happen, either. This trio of exchange-traded funds (ETFs) can do the job in a snap. Here’s a closer look at each.

iShares High Dividend Equity Fund

If your goal is producing above-average dividend income right now, your first stop should arguably be the iShares High Dividend Equity Fund (NYSEMKT: HDV).

Just as the name implies, this iShares fund seeks to maximize your payout by choosing stocks with superior dividend yields. That’s not to suggest, however, it merely tracks down the market’s highest-yielding names and shoves them into a bucket you can then buy a piece of. This fund is meant to mirror the Morningstar Dividend Yield Focus Index, which limits its constituents to U.S. stocks “screened for superior company quality and financial health.”

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The end result is a basket of 75 solid stocks that also happen to pay above-average dividends. Among its top holdings right now are names like AbbVie, JPMorgan Chase, and Verizon, supporting the fund’s current yield of around 3.2%.

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That may not seem like a whole lot; you can certainly find bigger yields out there. But you’d be hard-pressed to find better yields without giving up the solid blue chip status all of this fund’s stocks boast.

Vanguard Dividend Appreciation ETF

If you’re more interested in long-term dividend growth than current income levels, consider the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG).

Once again, the name says it all. The ETF is built around tickers that may not necessarily dish out a ton of regular quarterly income now, but rather it holds stocks that reliably grow their payouts in a big way over time. Microsoft is this ETF’s top holding at this time, fairly representing the bigger premise here. Microsoft shares are valued at a premium, and while the company doesn’t prioritize dividends, it does pay them. Its priority is growth. It just so happens that its dividend grows in …….


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