Start investing in dividend stocks can be done for example with a basket of 15+ different individual dividend stocks to accomplish differentiation and risk reduction. Alternatively, you could start with one or more dividend ETFs and even with little money. The question is what is the best dividend ETF? Here is an update on the year-to-date return.
Five Dividend ETF Analyzed
Earlier this year, we analyzed 10 dividend ETFs and answered the question “What is the best dividend ETF for long-term performance?”, the results can be found on the page Top-5 Best Dividend ETF’s.
The top-5 at the start of 2021 contained the following dividend ETF’s:
Dividend ETF | Symbol |
iShares Core Dividend Growth ETF | DGRO |
WisdomTree U.S. Dividend Growth ETF | DGRW |
ProShares S&P 500 Dividend Aristocrats ETF | NOBL |
Vanguard Dividend Appreciation ETF | VIG |
Vanguard High Dividend Yield ETF | VYM |
As a check-point, here are the total return of the 5 dividend ETFs and the S&P 500. It is good to see that the ETF’s can match or outperform the S&P 500 index. Two dividend ETFs are just below the total return of the index, while the high dividend yield one is showing a stronger performance. Other Sources of Dividend Investment Ideas There are several lists to quickly screen for businesses that regularly pay rising dividends. Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book. Thanks for reading this article. Please send any feedback, corrections, or questions to service[@]moneyinvestexpert.com.