It seems everyone and their grandmother is on the hunt for dividend yield.
Which is funny — I think back only a few years ago, and nobody even knew what preferred stocks were, but the other day I overheard people talking about them at a burger joint!
When it comes to dividend stocks, we always want to make sure we are buying good investments, because a high yield might mask a terrible business. That’s why I like dividend exchange-traded funds, because they provide tremendous diversity. Even if a company or two were to completely implode in the ETF, it would hurt the fund, sure, but the impact likely would be minimal, and you’d certainly be better off than individually holding the company that went under!
I’ve found three nice choices for dividend ETFs that offer diversity both within each selection and across all three selections. Here’s a look: