7.10.11

We could use ETFs to get dividends

To invest in companies that pay dividends, we can choose either to buy individual stocks, or purchase a mutual fund or ETF that invest in dividend-paying companies. Here, we will only look at ETFs with the main objective as generating incomes from dividend distributions. However, some people would like to avoid the financial sector, which is a high-dividend payer.

We present two ETFs from Wisdom Tree:

  • DOO: it follows the International Dividend ex-Financials Index which measures the performance of high dividend-yielding international stocks outside the financial sector. The index consists primarily of large- and mid-capitalization companies incorporated in Europe, Japan, Australia, New Zealand, Hong Kong and Singapore that pass certain requirements related to capitalization, liquidity and selection. Click here for the top components.
  • DTN: it follows the performance of high dividend-yielding stocks outside the financial sector. The index consists primarily of large- and mid-capitalization companies listed on major U.S. stock exchanges under certain requirements. Here, you can see the top components.

ETFs could help us buy a nice dividend portfolio without worrying about stock picking.

7/10/2011