In my blog, Dividend Growth Investor, I am always trying to find out the best dividend stocks which would provide me with a dividend income stream that would increase above the levels of inflation for many decades to come. If I didn’t have any time to go through all the hassle of picking individual dividend stocks however, I would have turned to dividend ETF’s.
I have stated several reasons why I don’t like investing in dividend etf’s in a previous article. If you want to own a portfolio of stocks which is ready to be purchased in a single ETF trade, and paying an annual fee is not an issue for you, then this article could be beneficial for you.
Most of my readers are aware that I am fascinated with the Dividend Aristocrats index, which is an equally weighted index which includes a select group of dividend stocks which have increased their dividends for over twenty five consecutive years. The bad news is that there isn’t an ETF that covers this index at the time. There is however an dividend ETF which covers the High-Yield Dividend Aristocrats index, which resembles the dividend aristocrats index closely in terms of performance and components.
The S&P High Yield Dividend Aristocrats ETF has an annual fee of 0.35%. The ETF currently yields 4.40%.
There are several other notable dividend ETF’s out there as well, which focus on rising dividend income:
PowerShares HighYield Dividend Achievers ETF (PEY) tracks the Mergent’s Highest Yielding Dividend Achievers Index. The total annual fee is 0.60%, while the index is currently yielding 5.69%.
The PowerShares Dividend Achievers ETF (PFM) tracks The Broad Dividend Achievers Index, which consists of companies that have increased their annual dividend for ten or more consecutive fiscal years. The annual fee is 0.60%, and the current yield is 2.72%.
The PowerShares International Dividend Achievers ETF (PID) tries to replicate The International Dividend Achievers Index which includes companies that have increased their annual dividend for five or more consecutive fiscal years. The annual management fee is 0.58% and the current yield is 4.91%.
iShares Dow Jones Select Dividend Index ETF(DVY) is the first dividend focused ETF, launched in 2003. This fund has a 0.40% annual expense ratio and currently yields 4.65%.
BlackRock Dividend Achievers Trust (BDV) has the highest management fee amongst all dividend ETF’s at 0.83% annually. The dividend yield is 9.90%. This fund is a prime example of the fact that higher management fees do not lead to superior investment performance after all. I should also add that this fund is more actively managed as the advisor tries to select a varying number of dividend achievers which spot the highest yields.
PowerShares High Growth Rate Dividend Achiever (PHJ) consists of the 100 United States stocks with the fastest growing dividends for the past 10 years. This ETF yields 2.70% and has an annual management fee of
Full Disclosure: Long S&P 500
Relevant Articles:
- International Dividend Achievers for diversification.
- Why do I like Dividend Aristocrats?
- Long term returns of S&P high-yield aristocrats
- Why do I like Dividend Achievers
Popular Posts
-
As part of my monitoring process, I review the list of dividend increases every week. This exercise is helpful in monitoring the progress f...
-
Back in the early 1970s, there was a group of companies which are referred to as “The Nifty Fifty” in the US. These were companies which wer...
-
As part of my monitoring process, I follow the dividend increases for companies I own, and companies on my watchlist. This process can also...
-
Peter Lynch is a super-investor, who managed to compound money at 29.30% at Fidelity Magellan Fund between 1977 and 1990. He is a very smart...
-
I review the list of dividend increases as part of my monitoring process. This helps me review the story behind companies I already own. It ...
-
We have had some new readers join the Dividend Growth Investor website. As a result, I wanted to discuss briefly what Dividend Growth Invest...
-
I review the list of dividend increases as part of my monitoring process. I find it helpful to observe the companies I own execute on their...
-
This morning Wells Fargo cut dividends by 80%, from 51 cents/share to 10 cents/share. This was not a surprise, since the bank stated that th...
-
"The idea that a bell rings to signal when investors should get into or out of the market is simply not credible. After nearly 50 years...
-
As an investor, I follow a very simple model. I look for companies that have a track record of annual dividend increases, supported by earn...
