Are You Seeking Regular Income? Try These 3 ETFs
Stock Analysis & Ideas

Are You Seeking Regular Income? Try These 3 ETFs

Story Highlights

Dividend-focused ETFs offer regular income. Further, they help diversify risk at a low cost.

Investors seeking regular income could consider investing in dividend-focused ETFs. Besides offering a cash inflow, ETFs, or exchange-traded funds, help diversify investors’ portfolios and reduce the overall risk. Against this backdrop, investors could consider investing in Schwab US Dividend Equity ETF (SCHD), Vanguard Dividend Appreciation ETF (VIG), and Vanguard High Dividend Yield Index ETF (VYM). Let’s dig deeper. 

Is Schwab US Dividend Equity ETF a Good Investment?

The Schwab US Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index. It offers a trailing 12-month dividend yield of 3.39% (as of December 31, 2022). Meanwhile, its 30-Day SEC yield (net investment income earned by the fund over a 30-day period and expressed as an annual percentage) stood at 3.31% (as of 02/02/2023).

Along with a decent dividend yield, the SCHD ETF has a low expense ratio of 0.06%. Meanwhile, a beta of 0.77 implies it is less volatile.

Its top five holdings include Broadcom (NASDAQ:AVGO), Verizon (NYSE:VZ), Texas Instruments (NASDAQ:TXN), Home Depot (NYSE:HD), and Cisco Systems (NASDAQ:CSCO). 

Overall, SCHD ETF has a Neutral Smart Score of seven on TipRanks.

What Companies are in the VIG ETF?

VIG ETF tracks the S&P U.S. Dividend Growers Index. It focuses on large-cap stocks that have been growing their dividends year-over-year. The VIG ETF has a low expense ratio of 0.06% and a 30-day SEC yield of 1.87% (as of January 31, 2023).

Information technology, financial services, healthcare, and consumer staples are the key sectors where VIG has the most exposure. Meanwhile, UnitedHealth (NYSE:UNH), Johnson & Johnson (NYSE:JNJ), Microsoft (NASDAQ:MSFT), JPMorgan Chase & Co. (NYSE:JPM), and Procter & Gamble (NYSE:PG) are its top five holdings. 

Like SCHD, VIG ETF also has a Neutral Smart Score of seven.

Is VYM a Good Long-Term Investment?

VYM tracks the FTSE High Dividend Yield Index. It focuses on stocks that are likely to have above-average dividend yields. VYM has a low expense ratio of 0.06% and offers a 30-Day SEC yield of 2.88% (as of January 31, 2023). 

The ETF has maximum exposure to financials, health care, consumer staples, and energy stocks. Meanwhile, its top holdings include Johnson & Johnson, Exxon Mobil (NYSE:XOM), JPMorgan Chase & Co., Procter & Gamble, and Chevron (NYSE:CVX).

Meanwhile, on TipRanks, VYM ETF carries a Neutral Smart Score of seven.

Bottom Line

These ETFs sport a Neutral Smart Score on TipRanks, implying they could continue to perform in line with the benchmark index. Meanwhile, investors can earn regular dividend income through these ETFs despite the volatility in the market. 



Price Change
S&P 500
Dow Jones
Nasdaq 100

Popular Articles