The Jobs and Growth Tax Relief Reconciliation Act cut the tax rate on qualified dividends 15% from up to 38.6%. ETF providers who offer dividend focused ETFs include WisdomTree, Barclays, PowerShares, State Street and Vanguard.
The iShares Dow Jones Select Dividend Index (DVY) has an annual gain of 16% over the last three years. Some of the high dividend-paying companies in the ETF include, AT&T (T), Bank of America (BAC), and Altria (MO). One of the broadest ETFs available is WisdomTree Total Dividend (DTD). It holds 770 stocks such as Exxon Mobil (XOM), General Electric (GE) and Citigroup (C).
DTD vs. DVY 1-yr chart:

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This article has 2 comments:
- d_teller
- 95 Comments
May 14 04:37 PMWhat happens to their share price and NAV's after 2010 if there won't be an extension of the qualified dividend rate makes me cautious to purchase those that have a > 5% premium, or whose costs + premium are > 5-6%.
- Gaylord Daniel
- 3 Comments
May 14 09:04 PMThank You
Gaylord Daniel
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