3 Top Dividend ETFs Built for Long-Term Buy-and-Hold Investors
Dividend ETFs provide protections that you don't get with single stocks.
Overview
When looking for long-term yield, income investors have two basic choices: dividend stocks and dividend exchange-traded funds. Dividend stocks have a little more consistency -- particularly when picking a stock with a long history of dividend growth and a respectable yield. Investors picking these stocks pretty much know exactly what kind of payout (and payout growth) they can expect.
But even with that benefit, I prefer dividend ETFs. The payout tends to fluctuate a bit because investors are buying into entire baskets of stocks rather than a single name. And the names in that basket can change depending on the underlying index or, in the case of an actively managed fund, the decisions of a fund manager.
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Originally published at www.fool.com.
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