5 Dividend ETFs To Check Out

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“Don’t pass up something that’s attractive today because you think you will find something way more attractive tomorrow.” - Warren Buffett

Passive income is a phrase everyone loves.

The truth is very few things actually provide passive income in life.

Dividend ETFs though are about as hands-off as you can get.

Here’s 5 that will pay you for doing nothing. (yes nothing)

1. SCHD - Schwab US Dividend Equity ETF

Created in 2011 SCHD is one of the most popular dividend ETFs out there and is well known for its performance and strong dividend yield. This Schwab fund is quickly becoming one of my favorite ETFs. The reason for that is not only it’s low fee, but it’s great returns over the last decade.

It’s the best overall performer on this list.

Div yield: 3.04%

Expense ratio: 0.06%

10 year average return: 14.3%

Top 10 holdings:

2. VYM - Vanguard High Dividend Yield ETF

Around the block since 2006 VYM has seen a lot. It's know for being one of the more "stable" dividend funds. As of recently VYM has been living in the shadow of SCHD.

Over the last 5 years VYM has only averaged a 10% return while SCHD has averaged over 14%. That said, we could see VYM start to make a comeback in this market. When it comes to holdings VYM has 410 compared to SCHD’s 101.

Div yield: 2.68%

Expense ratio: 0.06%

10 year average return: 12.2%

Top 10 holdings:

3. DGRO - iShares Core Dividend Growth ETF

Some might say DGRO is the new kid around town since showing up in 2014. As the name states it focuses companies with growing dividends. I like DGRO for the higher growth companies it holds like Apple and Microsoft. It contains 418 stocks with the top 10 accounting for 25% of the ETF.

DGRO is my favorite dividend growth ETF, but over the long run you can’t go wrong with VIG either which we’ll talk about next.

Div yield: 2.02%

Expense ratio: 0.08%

8 year average return: 12.8%

Top 10 holdings:

4. VIG - Vanguard Dividend Appreciation ETF

Created in 2006 VIG has been around a little longer than DGRO. It also holds companies with a record of growing their dividends. One of the differences with VIG is that it holds 267 companies with the top 10 accounting for 31% of total assets.

Div yield: 1.67%

Expense ratio: 0.06%

10 year average return: 12.9%

Top 10 holdings:

5. NOBL - S&P 500 Dividend Aristocrats

Dividend aristocrats are companies that have increased their dividends for at least 25 years in a row. The important thing to realize here is the higher expense ratio of 0.35%. Your costs of owning NOBL will be much higher compared to the other ETFs listed in this email.

My reason for including NOBL is that it’s mentioned to me all the time on Twitter. While it’s not a bad ETF, my personal opinion (not investing advice) is that there are other ETFs which perform just as well for cheaper.

Div yield: 1.98%

Expense ratio: 0.35%

8 year average return: 12.4%

Top 10 holdings:

Conclusion

Dividend ETFs are one of the best vehicles out there for earning passive income that is truly passive. All it takes is a few clicks on your phone to be earning dividends for essentially doing nothing.

I hope you found this helpful.

If you want more information on ETFs in other categories click here.

Now, it’s time for memes.

Resources:

M1 Finance - Open an account and get $50 free when you make a deposit of $100 or more.

Simply Invest With ETFs - Learn the in’s and out’s of ETFs and why they are the simplest and most effective way to invest.

Turbocharge Your Dividends - Generate extra income by selling covered calls on your stocks and ETFs.

Tweet Hunter - Automate your Twitter and build an account that will pay you $100 a week.

Personal Capital - Track all of your investments in one place.

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email send me a DM on twitter. See you soon!