WPS invests across sectors, including industrial, retail and diversified firms. Like other high dividend-paying ETFs, the aggregate portfolio leans toward value holdings, with an average P/E ratio of 13 and a P/B ratio of 0.86%. Twenty-six percent of the assets are from Japan, 13% are from Australia and 9.43% represent Hong Kong. VTIP is a low-fee U.S. inflation bond fund that’s designed to offer investors cash flow, appreciation and capital preservation, all with an eye to minimizing the impact of inflation. The interest rate on individual TIPS owned by the fund is set when the bonds are issued. Dividends are paid quarterly on the inflation-adjusted value of the bonds.

Dividend ETFs can be a more convenient way to pursue income investing than owning and managing your own basket of individual dividend stocks. Unlike the coupon payments on bonds, dividend payments are never guaranteed—that makes maintaining a portfolio of dividend stocks more labor intensive for individual investors. Fund managers sometimes offer high double-digit yields that they cannot sustain in order to attract investors who would otherwise ignore them.

The iShares Core High Dividend ETF tracks the Benchmark Morningstar Dividend Yield Focus Index. The fund’s very affordable expense ratio means more of your money goes into the markets and less to the fund’s management. Low expense ratios are correlated with higher returns over the long term. WDIV, on the other hand, includes companies that have sustained or boosted their dividends for at least 10 years. The fund currently owns 97 stocks with an average P/E ratio of 12 and an average price-to-book (P/B) ratio of 1.11, representative of value stocks.

They’re just meant to highlight the types of funds you might research as you seek out the best dividend ETF for you. The Invesco S&P 500 High Dividend Low Volatility ETF is benchmarked against the S&P 500 Low Volatility High Dividend Index. The fund typically owns 90% of the index’s constituent stocks. Receive daily, weekly, and monthly updates on only the things that matter to you and the world of money. With Titan, you can invest in actively-managed stock and crypto portfolios, as well as in alternative asset classes like Real Estate, Private Credit, and Venture Capital.

While there are many ETFs that pay out regular dividends, we look at just eight of them here. One hundred stocks are selected to the index based on four fundamentals-based characteristics (cash flow to total debt, return on equity, dividend yield, and five-year dividend growth rate). Each company is subject to screens for dividend ariana grande pregnant baby payment consistency, size, and liquidity as well. All companies in the index have paid dividends for at least 10 consecutive years. The risks of monthly dividend stocks are the reason I covered ETFs in the article today. First of all, monthly dividend stocks tend to be clustered in relatively few stock market sectors.