Dividends are a great way to earn some cash on your investments. Just ask billionaire Warren Buffett, who netted a cool $43 million in dividends through his personal portfolio. You can do likewise, albeit on a smaller scale, with ETFs that invest in a diversified array of top dividend-paying companies.
The iShares Dow Jones Select Dividend Index Fund (NYSEARCA:DVY) tracks the Dow Jones U.S. Select Dividend Index, which is made up of more than 100 top dividend-paying companies such as McDonald’s (NYSE:MCD) and Chevron (NYSE:CVX). Broken down, the fund is more than 25% invested in utilities and about 50% in consumer goods, industrials, and financials.
As of March 10, 2010, 10% of companies in the S&P 500 increased their dividends. With signs of a continued economic rebound and companies with strong balance sheets, that trend looks to continue.
Whether you’re looking to generate good dividend yields or establish a strong foundation for a successful ETF portfolio, DVY is one of several places you can look. We’ve listed more below!
- iShares Dow Jones Select Dividend Index Fund (DVY)
- WisdomTree SmallCap Dividend (NYSEARCA:DES), 3.4% yield
- SPDR S&P Dividend (NYSEARCA:SDY), 3.4% yield
- Vanguard High Dividend Yield Index (NYSEARCA:VYM), 2.8% yield
- WisdomTree Dividend Ex-Financials (NYSEARCA:DTN), 3.7% yield
Sumin Kim contributed to this article.