5 Dividend ETFs For Retirement Investors

For retirement investors, dividend ETFs can be a huge blessing

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5 Dividend ETFs For Retirement Investors

Dividend ETFs For Retirement Investors #1: iShares Core High Dividend ETF

iShares185 5 Dividend ETFs For Retirement InvestorsYield: 3%

Part of BlackRock’s (BLK) newly launched core line of ETFs, the iShares Core High Dividend (HDV) makes a great first stop for retirement investors looking to add a dose of dividends.

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.


Article printed from InvestorPlace Media, http://investorplace.com/2014/07/retirement-dividend-yield/.

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