2023 is right around the corner and it’s time to start thinking about where to invest your money. Exchange-traded funds (ETFs) are a great option for many investors, especially those looking for income in the form of dividends. Dividend ETFs provide investors with a diversified portfolio of stocks that pay dividends and offer attractive yields. In this article, we’ll look at the best dividend ETFs to consider for 2023.
SPDR S&P Dividend ETF (SDY)
The SPDR S&P Dividend ETF (SDY) is one of the most popular dividend ETFs in the market. It tracks the S&P High Yield Dividend Aristocrats Index, which is made up of stocks that have consistently increased their dividend payments for at least 25 consecutive years. This ETF has a solid track record of providing investors with strong dividend yields and long-term capital appreciation. The fund has a dividend yield of 3.5%, which is higher than the average dividend yield of the S&P 500. The fund has an expense ratio of 0.35%, which is lower than the average for dividend ETFs.
iShares Core Dividend Growth ETF (DGRO)
The iShares Core Dividend Growth ETF (DGRO) is another popular dividend ETF. This fund tracks the Morningstar US Dividend Growth Index, which is made up of stocks that have a history of increasing their dividend payments over time. The fund has a dividend yield of 2.3%, which is lower than the average dividend yield of the S&P 500. The fund has an expense ratio of 0.08%, which is lower than the average for dividend ETFs. The fund has a solid track record of providing investors with long-term capital appreciation and dividend income.
Vanguard Dividend Appreciation ETF (VIG)
The Vanguard Dividend Appreciation ETF (VIG) is another popular dividend ETF. This ETF tracks the NASDAQ US Dividend Achievers Select Index, which is made up of stocks that have a record of increasing their dividend payments. The fund has a dividend yield of 1.8%, which is lower than the average dividend yield of the S&P 500. The fund has an expense ratio of 0.09%, which is lower than the average for dividend ETFs. The fund has a solid track record of providing investors with long-term capital appreciation and dividend income.
Schwab U.S. Dividend Equity ETF (SCHD)
The Schwab U.S. Dividend Equity ETF (SCHD) is another popular dividend ETF. This ETF tracks the Dow Jones U.S. Dividend 100 Index, which is made up of stocks that have a record of increasing their dividend payments. The fund has a dividend yield of 2.5%, which is higher than the average dividend yield of the S&P 500. The fund has an expense ratio of 0.07%, which is lower than the average for dividend ETFs. The fund has a solid track record of providing investors with long-term capital appreciation and dividend income.
iShares Select Dividend ETF (DVY)
The iShares Select Dividend ETF (DVY) is another popular dividend ETF. This ETF tracks the Dow Jones U.S. Select Dividend Index, which is made up of stocks that have a consistent record of increasing their dividend payments. The fund has a dividend yield of 3.8%, which is higher than the average dividend yield of the S&P 500. The fund has an expense ratio of 0.40%, which is lower than the average for dividend ETFs. The fund has a solid track record of providing investors with long-term capital appreciation and dividend income.
Conclusion
When it comes to dividend ETFs, there are a variety of options available to investors. The ETFs discussed in this article are some of the best dividend ETFs to consider for 2023. Each of these ETFs offers investors a diversified portfolio of stocks with attractive dividend yields and the potential for long-term capital appreciation. As always, investors should do their own research and consult with a financial advisor before making any investment decisions.