Dividend ETFs For Retirement Investors #1: iShares Core High Dividend ETF
HDV tracks the Morningstar Dividend Yield Focus Index, which is a measure of U.S. firms that pay above-average dividends. The ETF takes it one step further by using a screen to eliminate stocks without a significant economic moat, and it adds the requirement of having the potential to earn above-average returns on capital. That creates a portfolio of 75 different stocks. Top holdings in the ETF include stalwarts like AT&T (T) and Chevron (CVX).
That focus on quality and high dividends creates a dividend yield of 3% for HDV. Even better: This dividend ETF has managed to beat the S&P 500 in total returns since its inception.
What’s more HDV is a dirt-cheap option to own. After adding it to its core series of ETFs, iShares dropped the expense ratio down to just 0.12% — or $12 per $10,000 invested. That makes it a great and low-cost option for retirement investors looking to juice their portfolios with dividends.