4 High-Dividend ETFs, with approx. 10% Return
One of the widely discussed topics of 2022 is the volatility in the stock market. Unfortunately, it seems like it will persist throughout the whole year as the Federal Reserve has started implementing a tighter monetary policy to lower inflation from its historic highs.
Dividend exchange-traded funds (ETFs) seem to be a saferinvestmentsas they offer relativelystablereturns, passive income, and a high degree of diversification to mitigate market volatility.
Like a mutual fund, a dividend ETF can contain a selection of stocks that offer broad market exposure, or that focus on certain sectors based on industry, company size or region. Dividend ETFs, like all ETFs, trade like a stock throughout the market day, whereas mutual funds trade after each market close.
These dividend ETFs have outperformed the broad market,with more than $1 billion in assets under management have notched positive returns year to date.
AUM:$12.7 billion
12-month return: 7.72%
Distribution yield: 3.11%
Its top industry groups include health technology, 23.85%; consumer nondurables, 17.02%; and energy minerals, 14.98%. $Exxon Mobil(XOM.US$ is the largest holding, with a weighting of 6.93%, but that stock is also the top holding for two of the other funds in this comparison. $Johnson & Johnson(JNJ.US$ claims the No. 2 spot, followed by $Verizon(VZ.US$ with a weight of 6.02%.
![]()
$First Tst Morningstar Div Leaders Funds(FDL.US$![]()
AUM: $3 billion
12-month return: 10.37%
Distribution yield: 3.42%
FDL’s index, focusing on sustainable dividend growth. An eligible company’s dividend has to be higher than its dividend of five years ago, while also being less than its forward earnings per share estimates.
In terms of allocations, finance,19.22%; energy minerals, 15.67%; and consumer nondurables, 13.16%. $Exxon Mobil(XOM.US$ has a weight of 9.04%, while $Verizon(VZ.US$ has a weight of 8.44%. $AbbVie(ABBV.US$ is the third-largest holding, with a weight of 8.06%.
AUM: $1.24 billion
12-month return: 4.16%
Distribution yield: 4.01%
PEY tracks the NASDAQ Dividend Achievers 50 Index, which includes 50 companies weighted by dividend yield. Companies must demonstrate 10 consecutive years of dividend growth to be eligible for inclusion.
The ETF’s top industry groups include finance, 26.8%; utilities, 25.44%; and consumer nondurables, 16.84%. $Northwest Bancshares(NWBI.US$ is the largest holding, with a weight of 3.28%, while $Altria(MO.US$ claims the No. 2 spot, with a weighting of 2.8%. $Healthcare Services Group(HCSG.US$ is the third largest holding, with a weight of 2.74%.
AUM: $1.13 billion
12-month return: 9.5%
Distribution yield: 3.34%
The fund tracks the WisdomTree U.S. High Dividend Index, which has the widest-ranging portfolio of any of the funds in this comparison by far. DHS has a relatively lenient methodology, only requiring that a company paid out a dividend in the last 12 months.
DHS’s top industry group is health technology, at 19.93%, followed by finance, at 17.57%; and consumer nondurables, at 17.3%. The top holdings include $Exxon Mobil(XOM.US$ at 7.33%, $Pfizer(PFE.US$ at 5.24% and $Chevron(CVX.US$ at 5.14%.
Source: FactSet; data as of 7/1/2022
A dividend ETF typically includes dozens of dividend stocks. That instantly provides you with diversification. Even if a few of the fund's stocks cut their dividends, the effect will be minimal on the fund’s overall dividend.
1、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.
2、5-year returns. Generally, higher is better.
3、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.
4、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 safer, while small caps might be seen as riskier.
5、Assets under management (AUM). This refers to the total market value of the assets a fund manages. The AUM gives an indication of the size of the fund. Funds with a lowerAUMmight not be providing higher dividend.
Disclaimer
No content herein shall be considered an offer, solicitation or recommendation for the purchase or sale of securities, futures, funds or other investment products. It does not take into account your investment objectives, financial situation or particular needs. All information and data, if any, are for reference only and past performance should not be viewed as an indicator of future results. It is not a guarantee for future results. Investments in stocks, options, ETFs, funds and other instruments are subject to risks, including possible loss of the amount invested. The value of investments may fluctuate and as a result, clients may lose the value of their investment. Please consult your financial adviser as to the suitability of any investment.
Risk Warning
The stock market is risky, and investors must be cautious before entering it.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
73281918 : From this list we are definitely missing SCHD and DGRO which are some of the top high yielder for dividend investing and historically have provided very high returns as specified here for example: The Best Dividend ETFs for Building Income – TheFrugalFella.com