We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dividend paying stocks are always popular with investors since about a third of S&P 500’s total returns since 1960 can be attributed to dividends. Over the past three decades, S&P 500 returns including dividends exceeded the index’s price returns by more than double, per BlackRock.
In the current market environment of rising rates and inflation, dividend stocks look better positioned than bonds since they may grow their payouts and realize capital appreciation and can provide some inflation protection over the long term.
Dividend payers also weather market downturns better than others. As a result, income focused investors have started relying more on dividend paying stocks.
There are two popular approaches to dividend investing—dividend growth stocks and high dividend stocks. I like dividend growth stocks for long-term investing since these are usually high-quality companies with solid balance sheets and stable cash flows, like Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) .
This year, however, high dividend payers have done better than dividend growers. They are typically in defensive sectors like utilities, real estate and consumer staples. Many energy companies have also boosted their payouts in recent years, and they are among the top holdings in high dividend funds.
The iShares Core High Dividend ETF (HDV - Free Report) holds high dividend paying equities screened for financial health. The ETF charges just 0.8% in expense ratio and has about $10.7 billion in assets. Exxon Mobil (XOM - Free Report) and AbbVie (ABBV - Free Report) are its top holdings.
The First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report) screens stocks for dividend consistency and sustainability. The fund has $2.6 billion in assets and charges 45 basis points. AT&T (T - Free Report) and AbbVie are its top holdings.
The $1.1 billion WisdomTree U.S. High Dividend Fund (DHS - Free Report) holds high-dividend-yielding companies. Exxon Mobil and Chevron (CVX - Free Report) are its top holdings.
To learn more, please watch the short video above.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Why High Dividend ETFs are Beating the Market
Dividend paying stocks are always popular with investors since about a third of S&P 500’s total returns since 1960 can be attributed to dividends. Over the past three decades, S&P 500 returns including dividends exceeded the index’s price returns by more than double, per BlackRock.
In the current market environment of rising rates and inflation, dividend stocks look better positioned than bonds since they may grow their payouts and realize capital appreciation and can provide some inflation protection over the long term.
Dividend payers also weather market downturns better than others. As a result, income focused investors have started relying more on dividend paying stocks.
There are two popular approaches to dividend investing—dividend growth stocks and high dividend stocks. I like dividend growth stocks for long-term investing since these are usually high-quality companies with solid balance sheets and stable cash flows, like Apple (AAPL - Free Report) and Microsoft (MSFT - Free Report) .
This year, however, high dividend payers have done better than dividend growers. They are typically in defensive sectors like utilities, real estate and consumer staples. Many energy companies have also boosted their payouts in recent years, and they are among the top holdings in high dividend funds.
The iShares Core High Dividend ETF (HDV - Free Report) holds high dividend paying equities screened for financial health. The ETF charges just 0.8% in expense ratio and has about $10.7 billion in assets. Exxon Mobil (XOM - Free Report) and AbbVie (ABBV - Free Report) are its top holdings.
The First Trust Morningstar Dividend Leaders Index Fund (FDL - Free Report) screens stocks for dividend consistency and sustainability. The fund has $2.6 billion in assets and charges 45 basis points. AT&T (T - Free Report) and AbbVie are its top holdings.
The $1.1 billion WisdomTree U.S. High Dividend Fund (DHS - Free Report) holds high-dividend-yielding companies. Exxon Mobil and Chevron (CVX - Free Report) are its top holdings.
To learn more, please watch the short video above.