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Best Dividend Paying Commodity ETF – ING Natural Resources ETF (IRR)

Picked by: Bryan Perry, editor of Cash Machine
Strategy: High-income dividend investing

Actually, my favorite dividend play for commodity stocks isn’t a stock at all — it’s an ETF. Specifically, it’s the ING Natural Resources ETF (IRR). Energy prices are back on the rise, fueled by growing optimism of a global economy bottom and led by China’s remarkable economy where GDP growth is back above 7%. This ETF has big potential in this environment. IRR focuses on providing a total return through a combination of current income, capital gains and capital appreciation. To do this, it invests at least 80% of its assets in equity securities or derivatives of natural resources companies.

A portion of IRR, 20% or so, is dedicated to securities in emerging market countries. Top holdings include Exxon Mobil (XOM) with 11.7% of assets, Chevron (CVX) at 8.2% and Schlumberger (SLB) at 5.1%.

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