30.25 0.00 (0.00%)
After hours: 4:15PM EDT
|Bid||0.00 x 800|
|Ask||0.00 x 1400|
|Day's Range||29.95 - 30.25|
|52 Week Range||26.45 - 30.76|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.38%|
Rising interest rates can be a bane for dividend stocks and high-yielding, income-oriented sectors, but there is some positive news in the 2018 dividend outlook. Through the first half of the year, approximately 40% of S&P 500 member firms boosted dividends, potentially making some of the best funds to buy in the dividend landscape all the more attractive. Looked at differently, some of the best funds to buy need to show investors that dividend stocks are worth the extra risk relative to safer U.S. government debt.
Traditional income products like CDs, money market funds and even bonds are still paying pitiful amounts of interest to savers. The explosion in ETFs has produced plenty of income and dividend focus funds. In fact, ETFdb.com tags more than 180 funds as “Dividend ETFs.” That’s a lot of different funds and ways to get your income fix.
WisdomTree U.S. MidCap Dividend ETF DON employs a fundamental weighting approach and is a strong candidate for exposure to dividend-paying U.S. mid-cap stocks. This fund weights its holdings by their expected dividend payment, which effectively diversifies risk, and rebalances into stocks as they become cheaper relative to their dividends. Many dividend-oriented funds land in the mid-value Morningstar Category because they weight large-cap stocks by dividend yield or equally, which knocks down their portfolio's weighted average market cap.
If any investment is firing on all cylinders right now then that is small caps. The segment has been on a steady uptrend since mid-March, following the onset of President Trump’s protectionist policies.Source: Shutterstock
There are nearly 2,200 exchange-traded products (ETPs) trading in the U.S. and that list expands on an almost daily basis. So depending on one’s point of view, it is either really easy or extremely difficult to boil the expansive exchange-traded funds (ETFs) down to 10 funds suitable to be held over lengthy time frames.
When it comes to investing in dividend funds, there are a few trade-offs to be aware of. Of course, everyone is looking for low-cost dividend funds, and yet low-cost dividend funds usually mean passively managed exchange-traded funds or mutual funds. Expenses are going to rise as you move into higher-yielding securities that require more active management.
For years, many investors did not associate small-cap stocks with dividends. Even today, the Russell 2000 Index and the S&P SmallCap 600 Index, two of the most widely followed gauges of U.S. smaller companies, yield an average of 1.2% on a trailing 12-month basis.
Smaller stocks paying dividends are generally more mature and profitable, a welcome find for retirees in search of new sources of investing income in retirement.
Dividend stocks will continue to gain popularity in 2018, as many investors struggle to find consistent sources of income. After all, despite talk of rising interest rates the 10-year T-Note yields about 2.3% right now and CDs at your local bank rarely crack the 1.3% mark.
When it comes to investing, small-cap stocks beat large caps as the best ETFs to buy. After all, it’ll take a lot of a behemoth like International Business Machines Corp. (NYSE:IBM) to get the ship moving. Which is why small-cap stocks have tacked on an extra 253% in cumulative extra returns over large-cap stocks.
Key U.S. index funds remained narrowly mixed Monday as the tech-heavy Nasdaq composite led the upside.