dustbusterz

Dividend Stock Investing: Two Sectors with the Most Stable Yields

There are many utility-based ETFs, but take a look at the largest one - the Utilities Select SPDR (NYSE: XLU), which tracks S&P 500 utility stocks, or the Vanguard Utilites ETF (NYSE: VPU). The funds pay a dividend of 4.8% and 4.3% respectively. In addition, ETF Guide says the income received from the dividends is taxed at 15% rate, lower than regular income tax rates.

In the Consumer Staples area, consider the Consumer Staples Select Sector SPDR (NYSE: XLP), with a dividend yield just under 3%, or the iShares Dow Jones U.S. Consumer Goods ETF (NYSE: IYK)


These might be good choices, but why pay fund managers to merely mirror a sector , when you can chose the best 2 to 3 from that sector your self? And in doing so, you would most likely out perform the ETF its self.I don't like ETFs because they can carry good as well as bad stocks which can hold back share returns.Then again, you have to also contend with fund managers who are mandated to have money in the markets(even when markets aren't the best place to be at the moment) when you might prefer to have ore of your cash on the sidelines waiting for a better deal.