The most common way to invest in the stock market is to invest in mutual funds or ETFs and high-dividend ETFs are peanuts to new investors, expert’s best suggestion is to invest at an early stage on high dividend ETFs. You can also invest in mutual funds same as in ETFs. There is minimum risk and you have experts who managed ETFs, they try to give the best returns on your investment.
Table of Contents
What is an ETF?
ETF is the short form of Exchange-traded funds, ETFs build from stocks, bonds, money market instruments, etc. ETFs are very similar to mutual funds’ rules and regulations, with the same investment pattern. Diversified investments from stocks, bonds, currency, commodities, etc. are the same as a mutual fund.
Types of ETFs (Exchange-traded funds)
ETFs suit almost every investor, and here we mentioned some types of ETFs.
- Liquid ETFs: These ETFs are most commonly invested in government short-term securities, to minimize investor risk.
- Gold ETFs: Gold ETFs are specially for those who don’t want to wear gold but want gold investment benefits, no need to purchase physical gold.
- Bond ETFs: These ETFs are special designs for investing in bonds, these ETFs provide you with a balance to your investment portfolio.
- Index ETFs: The index is built from various stocks, Dow Jones, S&P 500, and Nasdaq Composite indexes. The index ETFs are invested in these types of indexes only.
- Currency ETFs: In these ETFs, you can earn the benefits of price fluctuations of currency of any currency or basket of currency.
What is a Dividend?
A dividend is a payment made by a company to its shareholders, usually on a quarterly basis. The amount of the dividend is determined by the company’s board of directors and may be given in the form of cash or as additional shares of stock. For more details read our article.
Best dividend stocks to invest in 2023
What is a dividend ETFs?
Dividend ETFs are a type of exchange-traded funds (ETFs) that are intended to invest in a group ofstocksthat have the potential to offer high dividends. Dividend ETFs exist so that investors are given an opportunity to enjoy excellent gains through high yields.
6 High-Dividend ETFs to invest
There are lots of ETFs to invest in, but here we provide 6 high-dividend ETFs to invest in.
DIV – SuperDividend U.S. ETF
Performance of DIV ETF
| As of recent month & quarter-end (12/31/22) | Fund NAV | Market Price | Index |
| 1 Year | -4.05% | -3.91% | -3.40% |
| 3 Years | -1.07% | -1.05% | -0.84% |
| 5 Years | 0.71% | 0.70% | 1.05% |
| Since Inception | 3.79% | 3.86% | 4.36% |
Key Information of DIV ETF
| Key InformationAs of 01/13/23 | |
| Inception Date | 03-11-2013 |
| Total Expense Ratio | 0.45% |
| Net Assets | $700.25 million |
| NAV | $19.45 |
Holding of DIV ETF
| Name | Net Assets (%) |
| SABINE ROYALTY TRUST | 3.86 |
| GILEAD SCIENCES INC | 3.01 |
| USA COMPRESSION | 2.63 |
| IRON MOUNTAIN INC | 2.58 |
| CONSOLIDATED EDISON INC | 2.53 |
| IBM | 2.5 |
| ENNIS INC | 2.43 |
| KRAFT HEINZ CO/THE | 2.4 |
| SPARTANNASH CO | 2.4 |
| AMERICAN ELECTRIC POWER | 2.37 |
DIV ETF Characteristics
| ETF CharacteristicsAs of 01/13/23 | ||
| Return on Equity | 16.20% | |
| Weighted Avg. Market Cap | 33,307 M | |
| 2021 | 2022 | |
| Price-to-earnings | 13.55 | 11.55 |
| Price-to-book value | 1.92 | 1.83 |
PGX – Investco Preferred ETF
The Invesco Preferred ETF invests at least 80% of its assets in fixed-rate, US dollar-denominated preferred securities that are listed on the ICE BofAML Core Plus Fixed Rate Preferred Securities Index, which tracks the performance of preferred securities issued in the US domestic market and have a minimum rating of B3 and an investment-grade country risk profile. The fund uses a sampling methodology and is rebalanced and reconstituted monthly.
Top holding of PGX ETF
| HOLDING NAME | WEIGHT |
| JPMorgan Chase & Co | 1.61% |
| Wells Fargo & Co | 1.46% |
| JPMorgan Chase & Co | 1.44% |
| JPMorgan Chase & Co | 1.41% |
| JPMorgan Chase & Co | 1.35% |
| Bank of America Corp | 1.29% |
| Bank of America Corp | 1.25% |
| AT&T Inc | 1.21% |
| JPMorgan Chase & Co | 1.15% |
| AT&T Inc | 1.09% |
PGX ETF 10 years performance
SPHD – Invesco S&P 500 High Dividend Low Volatility ETF
The Invesco S&P 500 High Dividend Low Volatility ETF is designed to track the performance of the S&P 500 Low Volatility High Dividend Index. At least 90% of the fund’s assets will be invested in the common stocks that make up the index.
Top Holding of SPHD ETF
SPHS ETF holds more than 50 dividend stocks, let’s watch the top holdings of SPHD, This ETF establish in 2012.
| COMPANY | % OF FUND |
| AT&T Inc | 3.16 |
| Altria Group Inc | 3.15 |
| Kinder Morgan Inc | 3.15 |
| Gilead Sciences Inc | 3 |
| Dow Inc | 2.84 |
| Iron Mountain Inc | 2.56 |
| Williams Cos Inc/The | 2.46 |
| Philip Morris International Inc | 2.44 |
| Omnicom Group Inc | 2.44 |
| International Business Machines Corp | 2.4 |
10 Years performance of SPHD ETF
Below mentioned chart showing the data of $10000 invested from 2013 to 2022
SPHD ETFs Portfolio Characteristics
| Dividend Yield | 3.74% |
| Price/Earnings | 13.25 |
| Estimated Price/Earnings | 13.51 |
| Price/Book | 1.98 |
DHS – WisdomTree U.S. High Dividend Funds
WisdomTree U.S. High Dividend Fund seeks to track the investment results of high-dividend-yielding companies in the U.S. equity market.
These ETFs are specially for those looking for high dividend-paying stocks, they don’t need to find stocks, just invest in these dividend ETFs and relax.
Top Holding of DHS – WisdomTree U.S. High Dividend Funds
| Name of securities | Weight |
| 1. Exxon Mobil Corp XOM UN | 5.18% |
| 2. Chevron Corp CVX UN | 4.93% |
| 3. Pfizer Inc PFE US | 4.63% |
| 4. AbbVie Inc ABBV UN | 4.58% |
| 5. Philip Morris International Inc PM UN | 4.19% |
| 6. Altria Group Inc MO US | 3.53% |
| 7. Cisco Systems Inc CSCO UQ | 3.34% |
| 8. AT&T Inc T UN | 3.03% |
| 9. International Business Machines Corp IBM UN | 2.18% |
| 10. Pioneer Natural Resources Co PXD UN | 2.08% |
Past 10 Years of Performance
These ETFs hold good dividend-providing companies means these ETFs’ performance is also very good. Over the past 10 years, these ETFs gave 10.30%. If you invested $10000 in this fund 10 years ago this fund’s current value is $26617.
Portfolio Characteristics
| Dividend Yield | 4.11 |
| Price/Earnings | 11.4 |
| Estimated Price/Earnings | 11.28 |
| Price/Book | 2.1 |
| Price/Sales | 1.51 |
| Price/Cash Flow | 7.89 |
| Gross Buyback Yield | 2.2 |
| Net Buyback Yield | 1.38 |
SDIV – Global x Super Dividend U.S. ETF
Key Information of SDIV ETF
| Key InformationAs of 01/13/23 | |
| Inception Date | 06-08-2011 |
| Total Expense Ratio | 0.58% |
| Net Assets | $776.84 million |
| NAV | $25.61 |
| Fact Sheet |
Performance of SDIV ETF
| As of recent month & quarter-end (12/31/22) | Fund NAV | Market Price | Index |
| 1 Year | -26.43% | -26.38% | -28.52% |
| 3 Years | -15.47% | -15.46% | -16.08% |
| 5 Years | -10.31% | -10.33% | -10.71% |
| 10 Years | -2.05% | -2.21% | -2.35% |
| Since Inception | -1.78% | -1.80% | -2.17% |
Holding SDIV ETF
| HoldingsAs of 01/13/23 | |
| Name | Net Assets (%) |
| CPFL ENERGIA SA | 1.62 |
| IMPERIAL BRANDS PLC | 1.6 |
| BW LPG LTD | 1.58 |
| GERDAU SA | 1.5 |
| Cia Paranaense de Energia | 1.48 |
| PLATINUM ASSET MANAGEMENT | 1.44 |
| ANTERO MIDSTREAM CORP | 1.44 |
| PETROLEO BRASILEIRO SA | 1.42 |
| REDEFINE PROPERTIES LTD | 1.41 |
| SINOPEC ENGINE-H | 1.4 |
KBWD – Invesco KBW High Dividend Yield Financial ETF
KBWD ETF Characteristics
| Fund Characteristics | |
| Price/Earnings Ratio | 19.76 |
| Forward Price/Earnings Ratio | 8.47 |
| Price/Book Ratio | 11.11 |
| ROE | 26.86% |
| Avg Market Cap | $1,753MM |
Holding of KBWD ETF
| as of 01/13/2023Top Holdings | |
| COMPANY | % OF FUND |
| ARMOUR Residential REIT Inc | 5.09 |
| Orchid Island Capital Inc | 4.72 |
| Two Harbors Investment Corp | 4.26 |
| Annaly Capital Management Inc | 4.11 |
| AGNC Investment Corp | 3.94 |
| MFA Financial Inc | 3.8 |
| TPG RE Finance Trust Inc | 3.35 |
| Newtek Business Services Corp | 3.29 |
| Chimera Investment Corp | 3.24 |
| Trinity Capital Inc | 3.19 |
10 years performance of KBWD ETF
FAQ – we answered this article
What are the best high dividend ETFs?
The ETFs are the merger of some best dividend stocks. In these ETFs, most companies provide the best dividends. We covered some examples of these types of ETFs.
What are some of the benefits of investing in high dividend ETFs?
High dividend ETFs are providing the best dividends to investors, if you selected the best ETFs like, DHS – WisdomTree U.S. High Dividend Funds definitely you will get good income from ETFs. More details in the article.
What are some of the risks of investing in high dividend ETFs?
High Dividend ETFs does not always give a return as per your expectation, some ETFs provide very low return after a long time also and some ETFs are giving you a loss also. More details in the article.
Conclusions :
For your best investment approach, you need to start your investment with a very safe or minimum risky investment, therefore high dividend ETFs are really good for your investment, the reason that these ETFs minimize your risk or give profit. High dividend ETFs are always a safe investment way.
