An ETF managed by WisdomTree holds all U.S. companies that pay dividends and weights the stocks by projected dividends. The fund has outperformed the broad market the past three years and includes stable, established companies in the portfolio.
WisdomTree Total Dividend (DTD) has a 2.7% yield with a 0.28% expense ratio. [Special Report: Surveying the Dividend ETF Landscape]
“WisdomTree’s dividend-weighting scheme is a bet against growth stocks, which has paid off in spades in the past,” Morningstar says in a report on DTD. [Best Dividend ETFs]
DTD allows investors to access multiple dividend paying companies with one investment at a relatively low price. The low turnover rate of 0.15% is due to the portfolio remaining consistent and not re-weighting the holdings frequently, reports Selena Maranjian for The Motley Fool.
“Exchange traded funds offer a convenient way to invest in sectors or niches that interest you. If you’d like to load up your portfolio with some solid dividend-paying stocks, the Wisdom Tree Total Dividend ETF (DTD) could save you a lot of trouble. Instead of trying to figure out which companies will perform best, you can use this ETF to invest in lots of them simultaneously,” Maranjian wrote. “A well-chosen ETF can grant you instant diversification across any industry or group of companies — and make investing in and profiting from it that much easier.”
DTD has a three-year annualized return of 14.6%, compared with 13.3% for the S&P 500, according to Morningstar.
WisdomTree Total Dividend
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.