3 Dividend ETFs Built for Long-Term Investors to Buy and Hold
There are scores of domestic dividend ETFs to consider, but this trio can shorten investors' shopping lists.
Overview
Perhaps not realized by some investors, U.S. companies' preferred method of returning capital to shareholders for the bulk of this century has been share repurchases, not dividends.
Buybacks are flexible and more tax efficient than cash payouts. Plus, there's the added benefit of boosting earnings per share for companies that materially shrink their share counts. All of that sounds good, and it is, but none of those facts should be seen as slights against dividend stocks. In fact, U.S. companies, broadly speaking, remain very much committed to dividends.
These dividend ETFs, including a cheap Vanguard fund, are suitable for committed long-term investors. Image source: Getty Images.
Details
Source
Originally published at www.fool.com.