Why Dividend ETFs Deserve a Place in Your Portfolio

From Nasdaq: 2024-05-06 16:49:00

In a recent podcast, Kieran Kirwan discussed the recent underperformance of dividend-paying stocks. With growth stocks in favor, dividend payers have taken a backseat. Rising interest rates have also made money market funds more attractive. The ProShares S&P 500 Dividend Aristocrats ETF holds companies with 25+ years of dividend growth.

Investors have the option to invest in dividend growth stocks or high dividend stocks. Some tech companies, like Apple and Microsoft, have been paying dividends for years. Covered-call ETFs are popular for generating high yields and reducing portfolio volatility in sideways markets. The ProShares S&P 500 High Income ETF aims to improve the trade-off between income and total return.

ProShares offers various ETFs for investors interested in dividend-paying stocks. The ProShares S&P Technology Dividend Aristocrats ETF focuses on tech companies with consistent dividend growth. The Vanguard Dividend Appreciation ETF and iShares Core Dividend Growth ETF also hold high-quality companies with consistent dividend growth. Covered-call ETFs can work best in sideways markets but may underperform in strong bull markets. The ProShares S&P 500 High Income ETF and Nasdaq-100 High Income ETF are worth considering for income-seeking investors.



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