If you're an income investor, your primary concern is finding solid investment vehicles paying out impressive dividends. Sure, there are plenty of individual stocks out there with high yields, but trying to pick the best ones can be is a trying task. Fortunately, the exchange-traded fund (ETF) landscape is wide enough now that you don't have to venture into individual equities to get a diversified basket of high-yielding dividend stocks ...
- The article goes on to name 5 of the best high-yielding dividend ETF's that you can find out there, including PFF (7.1% dividend rate as at end May 2011) and PGX (6.6%). The key to successful dividend ETF investing though, is not to simply chase yields, but also to examine the components of these ETF's to see how they fit into your overall portfolio strategy and investment style.
A simple way to find out what are the components of the ETF you are considering would be to go to the Yahoo Finance page and enter the ETF stock symbol, and click into the Holdings link. So for example, you will find that the among the Top 10 Holdings of PGX are Barclays Bank, Wells Fargo, JP Morgan, Citigroup and General Electric. If you are comfortable with these, you may then consider investing in this ETF, but of course if you have concerns with some of the components, let's just say, some of the financial institutions, especially since the events of 2008, then you could continue your search elsewhere.
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Some of the best high yield dividend ETF's to consider investing in
