Why Dividend ETFs Deserve a Place in Your Portfolio

Date:

  • (1:30) – What Is The Purpose Behind The Current Underperformance of Dividend Paying Shares?
  • (8:15) – Ought to Buyers Proceed Shopping for Dividend Paying Shares?
  • (13:50) – ProShares S&P 500 Dividend Aristocrats ETF: NOBL
  • (18:30) – Can You Discover Robust Expertise Shares That Pay Dividends?
  • (25:00) – What Are The Advantages In Investing Into Possibility Based mostly Earnings ETFs?
  • (23:45) – Episode Roundup: REGL, VIG, DRGO, TDV, TDIV, ISPY, IQQQ
  •                 [email protected]

 

On this episode of ETF Highlight, I converse with Kieran Kirwan, Director, Funding Technique at ProShares about dividend progress and high-income methods.

Dividend-paying shares have been out of favor currently. Most buyers have piled into progress shares, notably mega-cap tech shares, whereas dividend payers are historically extra mature corporations in outdated financial system sectors.

Additional, with rising rates of interest, cash market funds and short-term bonds have develop into extra enticing for income-seeking buyers.

There are two fashionable approaches to dividend investing: dividend progress shares and excessive dividend shares. Dividend growers are normally high-quality corporations with strong steadiness sheets and steady money flows.

Apple AAPL, Microsoft MSFT and NVIDIA NVDA have been paying a dividend for a few years, however their yields are moderately small. Alphabet GOOGL and Meta Platforms META lately introduced their first-ever dividends.

The ProShares S&P 500 Dividend Aristocrats ETF NOBL holds high-quality corporations which have grown their dividend for no less than 25 consecutive years. The ProShares S&P Expertise Dividend Aristocrats ETF TDV holds expertise corporations which have constantly raised their dividends for no less than seven years.

The Vanguard Dividend Appreciation ETF VIG and the iShares Core Dividend Progress ETF DGRO additionally maintain high-quality corporations with a historical past of constant dividend progress.

Lined-call ETFs that use choices methods to generate exceptionally excessive yields have been immensely fashionable over the previous couple of years. Along with excessive yields, these methods usually cut back portfolio volatility.

Buyers ought to, nevertheless, do not forget that these methods work finest in sideways markets however underperform in sturdy bull markets. They do present some safety when shares fall.

The ProShares S&P 500 Excessive Earnings ETF ISPY and Nasdaq-100 Excessive Earnings ETF IQQQ put money into day by day covered-call choices with an purpose to enhance the trade-off between earnings and whole return.

Tune in to the podcast to be taught extra.

Be certain that to be looking out for the subsequent version of the ETF Highlight and bear in mind to subscribe! When you have any feedback or questions, please e-mail [email protected].

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Apple Inc. (AAPL) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

Vanguard Dividend Appreciation ETF (VIG): ETF Research Reports

ProShares S&P 500 Dividend Aristocrats ETF (NOBL): ETF Research Reports

iShares Core Dividend Growth ETF (DGRO): ETF Research Reports

ProShares S&P Technology Dividend Aristocrats ETF (TDV): ETF Research Reports

Meta Platforms, Inc. (META) : Free Stock Analysis Report

ProShares S&P 500 High Income ETF (ISPY): ETF Research Reports

ProShares Nasdaq-100 High Income ETF (IQQQ): ETF Research Reports

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.

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