Tags: Zacks | dividend | ETF | investing

Zacks: 6 Quality Dividend ETFs for Safety, Income

Zacks: 6 Quality Dividend ETFs for Safety, Income

By    |   Thursday, 28 January 2016 12:36 PM

Investors seeking some safety after the 6.5 percent decline in stocks since the beginning of the year and more than 10 percent drop from the record high have a variety of ways to protect their portfolios.

Quality dividend stocks offer safety and stability in a choppy stock market as they ensure regular income to investors in the form of dividends, according to Zacks Investment Research.

These companies also have a long track of profitability, history of raising dividend year over year with prospects of further increases, good liquidity and possibly a bargain valuation.
“These products provide a nice combination of dividend growth and capital appreciation opportunity and are mainly suitable for the risk-averse, long-term investors,” the research firm wrote in a Seeking Alpha post. “For them, we have highlighted some ETFs that could be excellent choices irrespective of the stock market directions.”

6 Quality Dividend ETFs
  1. FlexShares Quality Dividend Index ETF (QDF): “This fund uses a proprietary model that includes factors like profitability, solid management and reliable cash flow. Then, the firms are selected based on expected dividend payments, resulting in a basket of 185 securities.”
  2. Schwab U.S. Dividend Equity ETF (SCHD): “This product offers exposure to the 111 high dividend-yielding U.S. companies that have a record of consistent dividend payments supported by fundamental strength based on financial ratios and ample liquidity.”
  3. WisdomTree LargeCap Dividend ETF (DLN): “This ETF tracks the WisdomTree LargeCap Dividend Index, which is dividend weighted annually to reflect the proportional share of cash dividend that each company is expected to pay in the coming year.”
  4. ProShares S&P 500 Dividend Aristocrats ETF (NOBL): “This product provides exposure to 51 companies that raised dividend payments annually for at least 25 years by tracking the S&P 500 Dividend Aristocrats.”
  5. WisdomTree U.S. Dividend Growth ETF (DGRW): “This fund tracks the WisdomTree U.S. Quality Dividend Growth Index and offers diversified exposure to U.S. dividend-paying stocks with both growth and quality characteristics like long-term earnings growth expectations, and three-year historical averages for return on equity and return on assets.”
  6. First Trust NASDAQ Rising Dividend Achievers ETF (RDVY): “This fund provides exposure to 50 U.S. stocks with a history of rising dividends and that are expected to continue doing so in the future. In addition, it also screens for stocks with rising earnings per share and cash-to-debt ratio greater than 50 percent.”
Source: Zacks Investment Research

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Investors seeking some safety after the 6.5 percent decline in stocks since the beginning of the year and more than 10 percent drop from the record high have a variety of ways to protect their portfolios.
Zacks, dividend, ETF, investing
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2016-36-28
Thursday, 28 January 2016 12:36 PM
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