Dividend Paying Stocks ETF Review
Dividend paying stocks are a popular investment choice, because of the dividends that these securities offer, and a number of ETFs have been created that invest only in these stocks. One drawback in single stock investments is that it can be very time consuming, because each individual stock must be researched, evaluated, and valued. An exchange traded fund takes all of the work out of finding the top quality highest dividend paying stocks, and also adds helps diversify your portfolio holdings. These funds may contain fifty or a hundred of the best dividend paying stocks possible, or even more in some cases.
Stock market predictions can have a big impact on the holdings of an ETF that only includes stocks which pay dividends, so there is some loss risk, but since the holdings are diversified this can help minimize these risks and will usually result in a small return instead of a loss. For some investors these choices offer many different benefits, and since they are professionally managed by a financial investment expert there is no time or effort required to pick and evaluate stock choices. Dividend paying stocks offer returns on a regular basis, but there is no guarantee that dividends from a stock will continue to be made in the future. Unlike the highest interest savings account investments, there is a risk that the stock price could fall, the company could go bankrupt or face financial difficulties, and all of the capital invested could be wiped out.
Exchange traded funds that only trade in dividend paying stocks are in high demand by experienced investors, and a single investmentigh yield energy stocks could give you a diversified group of core holdings for your portfolio. Some of these funds may specialize in high yield energy stocks, while others may concentrate on the health care or biotechnology sectors, but they are all worth a second look because of what they offer investors. These funds may not be right for everyone, but they can be ideal for some investors.