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Follower ○○○

Favorite Dividend ETF's?

What are your favorite Dividend ETF's?

24 Replies
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Frequent Contributor

Re: Favorite Dividend ETF's?

Here is a list of many of them (link).

TICKER

FUND NAME

ISSUER

AUM

EXPENSE RATIO

3-MO TR

SEGMENT

VYMVanguard High Dividend Yield ETFVanguard$23.51B0.06%0.99%Equity: U.S. - High Dividend Yield
SDYSPDR S&P Dividend ETFState Street Global Advisors$18.40B0.35%0.29%Equity: U.S. - High Dividend Yield
DVYiShares Select Dividend ETFBlackRock$17.11B0.39%0.06%Equity: U.S. - High Dividend Yield
SCHDSchwab U.S. Dividend Equity ETFCharles Schwab$9.23B0.06%0.37%Equity: U.S. - High Dividend Yield
HDViShares Core High Dividend ETFBlackRock$7.12B0.08%2.46%Equity: U.S. - High Dividend Yield
FVDFirst Trust Value Line Dividend Index FundFirst Trust$6.05B0.70%3.54%Equity: U.S. - High Dividend Yield
IDViShares International Select Dividend ETFBlackRock$4.27B0.50%-1.33%Equity: Developed Markets Ex-U.S. - High Dividend Yield
SPHDInvesco S&P 500 High Dividend Low Volatility ETFInvesco$3.24B0.30%-0.16%Equity: U.S. - Large Cap
DEMWisdomTree Emerging Markets High Dividend FundWisdomTree$2.13B0.63%-3.56%Equity: Emerging Markets - High Dividend Yield
FIHDUBS AG FI Enhanced Global High Yield ETNUBS$1.86B1.65%2.64%Leveraged Equity: Developed Markets - High Dividend Yield
RDIVOppenheimer S&P Ultra Dividend Revenue ETFOppenheimerFunds$1.78B0.39%-0.88%Equity: U.S. - High Dividend Yield
FDLFirst Trust Morningstar Dividend Leaders Index FundFirst Trust$1.63B0.45%3.14%Equity: U.S. - High Dividend Yield

 

I took the top biggest 5 ETF vs the SP500 to prove that higher Div investing has no legs (chart).

Actually, USMV is a better choice (link).  With the best combo of CAGR(=annual return) + lowest SD(=volatility) + best Sharp & Sortino.  

PortfolioCAGRStdevBest YearWorst YearMax. DrawdownSharpe RatioSortino Ratio
VYM12.90% 9.92%30.08%-5.91%-9.63% 1.232.08
SDY13.51% 10.00%30.07%-2.74%-7.89% 1.272.25
USMV13.97% 8.68%25.09%1.36%-7.56% 1.52.78
Vanguard 500 Index Admiral14.64% 10.80%32.33%-4.43%-13.53% 1.282.12

 

It's your choice to believe in the high Div brainwash.

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Frequent Contributor

Re: Favorite Dividend ETF's?

@BamaCajun , you have a duplicate post. Posters can now Delete posts from the down-arrow menu on the right.

YBB
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Follower ○○○

Re: Favorite Dividend ETF's?

Since it pertained to both ETF's and Dividends I posted this question in both forums. I deleted the one in the Dividend forum. 

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Explorer ○○

Re: Favorite Dividend ETF's?

I use SPYD @ TDAmeritrade which I buy commission-free.

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Frequent Contributor

Re: Favorite Dividend ETF's?


@dbcooper93 wrote:

I use SPYD @ TDAmeritrade which I buy commission-free.


Observation, VG also have VIG(ETF) + VDADX(OEF).  Even if you can buy VIG commission free it would better(=cheaper) to buy the OEF.  Right now VIG bid=111.17 ask=111.20, this means in order to buy it you would pay 111.20 which is 0.03 more, same when you sell.  When you buy/sell VDADX you will not pay for commission and bid-ask gap.  The commission is only one expense out of the total.

BTW, VIG is better than SPYD for 1 and 3 years, see the chart.

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Frequent Contributor

Re: Favorite Dividend ETF's?

I like IDV and REM

Capital
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Follower ○○○

Re: Favorite Dividend ETF's?

I'm not familiar with buying ETF's, I've only bought individual stocks at this point, so can someone please tell me if this is a good or bad time to buy SCHD? Should I wait for the "Consider Buy" price? Details on each of these would be appreciated.

 

No photo description available.

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Explorer ○○○

Re: Favorite Dividend ETF's?

Colleague:

 

I posted a question, a couple of days ago, on the  Mutual Fund Forum Asking  which fund is better as a Core Fund for my retirement portfolio PRDGX [ A top notch Dividend Fund] or USMV . 

Does your highlighted Research answer my question,  all other things being equal,  that USMV is a better choice rather than a Dividend Fund like PRDGX?

Signed,

NoFriends1

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Explorer ○

Re: Favorite Dividend ETF's?

i'm not familiar with PRDGX, but what is attractive about a 1.6% yield and a .65 ER?

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Frequent Contributor

Re: Favorite Dividend ETF's?

BamaCajun,

I’d go with the Vanguard OE fun- VDADX. They require minimum of ten years dividend growth, and hence many/ most of their stocks are narrow or wide moat. Since they tend to buy “strong” companies with competitive advantages, the fund should do “better” during downturns/ recessions than the overall market. Low expense ratio, low turnover, and very solid performance. It’s my “core” US fund in my taxable account.

Win
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Participant ○○○

Re: Favorite Dividend ETF's?

When I was doing dividend ETFs, my favorite was DVY. 

It's a little different from other dividend ETF. The portfolio holdings are only 100 stocks, and it's pretty well diversified. Not concentrated in only energy and/or utility.

Of course, I've moved onto closed end funds (CEF) instead of ETFs. CEF also trade daily. But they can use leverage and other vehicles to boost their dividend/yield. Utility CEF such as UTG pays more that 5.8% yield via monthly distributions. Far out distancing whatever a dividend ETF can do. Others write options against holdings to generate income that will boost distributions. But they do take research to see which ones work for you. 

But for straight ETF, I vote for DVY

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Frequent Contributor

Re: Favorite Dividend ETF's?

        We use VYM like a bank account to compound excess to needs dividends and growth stock gains, plus to hopefully provide stability during the usual stock market gyrations.

        The ER is very low, the payout is about 30% more then most of it’s kind, there is some growth of principle during good markets and it offers a backstop during bad.

         The reason we don’t use the higher yielding dividend ETF’s is the higher ER and loss of secondary principle growth. VYM usually holds solid slow growth U.S. companies. 

          We receive monthly dividends from CEF’s in a TIRA and occasional capital gains from growth stocks in a taxable account. VYM hopefully helps preserve any excess to needs dividends and capital gains from a taxable account.

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Explorer ○○○

Re: Favorite Dividend ETF's?

I am happy with vdigx.   In a taxable account, DGRO may be just as good.

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Explorer ○○

Re: Favorite Dividend ETF's?


@Saratoga wrote:

I am happy with vdigx.   In a taxable account, DGRO may be just as good.


I also like DGRO (iShares Core Dividend Growth ETF) especially more so if you can get it commission-free (which it is at Fidelity) and elsewhere or if you have some free trades.  

And interestingly - for the past 3 years performance - DGRO is slightly ahead of SCHD, VIG, VYM, DVY and PRDGX, VDIGX.  

 

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Explorer ○

Re: Favorite Dividend ETF's?

What am I missing?

VYM lost 50% or more during the financial crisis according to M*. Where's
the downside protection?
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Participant ○○○

Re: Favorite Dividend ETF's?


@FD1001 wrote:
Observation, VG also have VIG(ETF) + VDADX(OEF).  Even if you can buy VIG commission free it would better(=cheaper) to buy the OEF.  Right now VIG bid=111.17 ask=111.20, this means in order to buy it you would pay 111.20 which is 0.03 more, same when you sell.  When you buy/sell VDADX you will not pay for commission and bid-ask gap.  The commission is only one expense out of the total.

Expense ratio of VIG=0.06%. VDADX=0.08%. 

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Contributor ○○

Re: Favorite Dividend ETF's?


@BamaCajun wrote:

What are your favorite Dividend ETF's?


It really depends on what you're holding them for. Capital appreciation with dividends reeinvested? Reliable Income? Growing Income?

Considering this from the standpoint of reliable and growing income, in 2016 I analyzed the 12 high Dividend Paying ETFs with at least 10 years of dividend growth just to see how they handled the recession of 2007-2009. Here's the list

Div ETFs description.jpg

Note this has 14 ETFs but two are fixed income and so I did not include these in my updated list that looks at dividends paid over the past 12 years, January 2007 through December 2018. Here is the total of dividends paid by these ETFs over this 12 year period.

Total ETF Dividends 12 year.jpg

And here is the 12 year Geometric Rate of average annual dividend growth rates for this group of ETFs

12 year ETF div growth rate.jpg

It is clear some ETFs value quality of their holdings while others don't. It also shows how income ETFs diversify for individual stock risk, but actually concentrate industry risk. XLF makes this clear.

The following assumes these ETFs will continue their dividend growth at the annual average they show over the past 12 years.

10 year future ETF  total div based on past 12 year div growth rate.jpg

Of course, it is unlikely any ETF will duplicate over the next 10 years what it shows over the past 12 years.....but who knows? With another deep recession, which Dividend ETF would you rather be holding?

BruceM

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Explorer ○

Re: Favorite Dividend ETF's?

Thanks Bruce, great summary!

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Frequent Contributor

Re: Favorite Dividend ETF's?

Yes, DGRO was one I invested in when the market went down back in late 2018. I am still holding it and quite impressed. Also hold VDIGX.

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