The historic bull market just celebrated its eight-year anniversary this month. For investors worried about how much upside the aging bull market has left, dividend exchange-traded funds, or ETFs, are a great, conservative way to diversify a portfolio.
Most stocks are now at or near all-time highs. It’s always risky putting all your eggs in one basket, especially if they’re expensive eggs.
Instead of banking on further upside from individual stocks, dividend ETF investors can enjoy diversified exposure to segments of the market that may still be undervalued. They are also able to use ETFs to invest in assets other than stocks and enjoy reliable yields of above 4%.
Dividends and diversification are the two D’s of responsible long-term investing. The higher stock prices rise, the more investors should shift their attention from market upside to risk management.
Here are three dividend ETFs that provide investors with both diversification and high yields.