Monthly Dividend ETFs To Buy #3: WisdomTree SmallCap Dividend ETF (DES)
Dividend Yield: 2.5%
Over the longer term, small caps have historically out performed large cap stocks by a wide margin. That margin grows even larger when you include small caps that pay hefty dividends. Enter the WisdomTree SmallCap Dividend ETF (DES), which adds monthly dividend payouts to the mix.
According to WisdomTree, “The Index is dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each company is projected to pay in the coming year.” Or, in plain English, DES screens for those firms with not only the highest yields, but those that are also the most secure and strong.
All in all, DES tracks 685 different dividend paying small-cap stocks, with financials (26%), industrials (18%) and utilities (135), rounding out the top sector weights.
DES isn’t the highest yielding ETF on the planet, with a current dividend yield of 2.87%. However, that yield is nearly double traditional small-cap metrics like the iShares Russell 2000 (IWM). DES has also been less volatile than the popular IWM as well.
Expenses run 0.38% for the monthly dividend ETF.