Published Wed, 29 Aug 2018 13:09:19 -0400 on Seeking Alpha
In a recent article I published on Seeking Alpha, I compared seven of the largest dividend-specific ETFs by assets under management (AUM) for their ability to generate an annually increasing dividend income stream. The article received a lot of very positive comments as there have been very few published articles comparing various dividend ETFs. In this article, I provide a follow up to compare those same ETFs for their record of capital appreciation and total-return performance (capital appreciation and dividends). Since some dividend growth investors (DGI) are interested primarily in income generation and others are interested in income as well as total returns, these two companion articles will hopefully provide some useful insights for investors as to which dividend-specific ETFs might prove useful to their investment portfolios (and which to avoid!).
Dividend Growth Stocks Outperform Regardless of whether one is investing to generate income for retirement or to generate capital appreciation, investing in dividend-paying stocks, particularly those that regularly grow those dividends, has led to greater total return performance over time.
Source of Chart: Ned Davis Research, Inc. (2015)
For example, the chart above illustrates the average annual total returns of S&P 500 stocks from 1972 through 2014 based on dividend policy. The group of stocks that initiated a new dividend or raised their existing dividends (“Dividend Growers & Initiators”)... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|ISHARES DOW JONES SELECT DIVIDEND INDEX FUND||97.08||0.0||0.00||3.29||3.36|
|VANGUARD HIGH DIVIDEND YIELD ETF||85.34||0.0||0.00||0.00||3.06|
|SPDR S&P DIVIDEND ETF||98.70||0.0||0.00||2.42||2.44|
|VANGUARD DIVIDEND APPRECIATION ETF||110.75||0.0||0.00||0.00||1.84|
|SPDR S&P 500 ETF||282.78||0.0||0.00||5.24||1.83|
|ISHARES DOW JONES INTERNATIONAL SELECT DIVIDEND INDEX FUND||30.60||0.0||0.00||0.00||0.00|
Older articles featuring Ishares Dow Jones Select Dividend Index Fund (DVY):Vanguard Dividend Appreciation ETF: Steady Dividends In A Low-Cost Fund
FDVV: A High Dividend ETF For A Low Interest Rate Environment
Do Dividend-Paying Stocks Make Better Investments?
Paying My Bills With Dividends - Q4 2018 Update
The Best Dividend Stocks: What To Look For?
The Growing Risk To Dividend-Focused Strategies
The Case For Owning Isolated Dividends
DVYE: This ETF Provides Broad Exposure To Emerging Markets, Has Outperformed Its Peers, And Yields 5.8%
Paying My Bills With Dividends - Q3 2018 Update
For Retirees, A Most Compelling Case For Dividend Growth And Modest Dividend Income