Amateur investors seeking to minimize their exposure to risk while increasing the diversity of their holdings should consider index funds. If you’re looking for dividend-paying stocks, he thinks these are a good choice. In addition to diversifying your portfolio, ETFs are a great way to earn a decent return. Investing in high-quality stocks that pay out regular dividends and are financially sound will outperform funds that are only interested in chasing returns. 114 companies in the S&P 500 Index suspended guidance during the COVID-19 pandemic when they were only 60% through the earnings season.
Insider Monkey selected 10 dividend ETFs for 2022. The Nasdaq Victory US Large Cap High Dividend 100 Long/Cash Volatility Weighted Index is tracked by the VictoryShares US EQ Income Enhanced Volatility Wtd ETF. Reinvesting capital when the stock market is rising is a strategy employed by the index, which reduces its equity exposure when the market is falling. Over 114 stocks are included in the SPDR S&P Dividend ETF. Individually, these stocks have a lot of positive sentiment, making SPDR a top dividend ETF for the year 2022. 2.71 percent dividend yield and annualized returns of 25.41 percent are provided by the stock. The total net assets of Vanguard High Dividend Yield Index Fund ETF Shares as of December 31 were $54.6 billion, which the fund held in 412 stocks. These include JPMorgan Chase and Co., The Home Depot Inc., Procter and Gamble Co., Bank of America Corp., and Pfizer Inc. There are currently 105 holdings in Schwab U.S. Dividend Equity ETF. Broadcom and The Coca-Cola Company are three of the most notable holdings. With a market capitalization of $79.5 million, the Invesco S&P 500 High Dividend Low Volatility ETF has 49 stocks in its portfolio. Over 4% dividend yields can be found in each of these stock picks on their own. For more details, click 10 Dividend ETFs For 2022.