Top Dividend ETFs for Retirees to Consider

A report highlights the growing interest in dividend ETFs as a stable option for retirees amid the vast selection of dividend-paying stocks. Three standout ETFs, including iShares Select Dividend ETF and Vanguard High Dividend Yield ETF, offer attractive yields and performance metrics.

Date: 13-09-2024

AI Rating: 7

The report discusses several dividend ETFs that are particularly appealing to retirees. Here’s a breakdown of specific financial metrics related to the ETFs mentioned:

1. iShares Select Dividend ETF (DVY)

This ETF has net assets of nearly $19.8 billion and seeks to track the performance of the Dow Jones U.S. Select Dividend Index. With a 30-day SEC yield of 3.69% and an average annual total return of 8.1% since its inception, it provides a solid income opportunity for investors.

2. SPDR S&P Dividend ETF (SDY)

With more than $21.2 billion in assets under management, this ETF tracks the S&P High Yield Dividend Aristocrats index, featuring companies with at least 20 consecutive years of dividend increases. It has a 30-day SEC yield of 2.29% and an average annual total return of 9.14% since inception, making it attractive to dividend-seeking investors.

3. Vanguard High Dividend Yield ETF (VYM)

As the largest on the list, this ETF has total net assets of $70 billion and focuses on stocks with above-average dividend yields. While the current dividend yield isn't specified, it has an average annual total return of 8.68% since its inception and comes with a low expense ratio of 0.06%. It's positioned well for investors looking for both dividends and growth opportunities.

In summary, these ETFs provide a diversified approach to investing in dividend-paying companies, catering to retirees looking for reliable income sources. The attractive yields and historical performance metrics can lead to heightened interest and could impact the stock prices of the underlying companies featured in these ETFs.

Stocks: DVY SDY VYM