VIG - These 2 Dividend ETFs Are a Retiree's Best Friend
2024-01-27 14:45:00 ET
Most exchange-traded funds (ETFs) are passively managed and tied to an index of some sort. The big indexes are easy to understand, like the S&P 500 index. However, things get more complicated when you focus on a particular type of investing, like dividends.
There are different ways to slice and dice dividend stocks, so you need to pay close attention to the details if you are buying an ETF as a dividend lover. That said, two ETFs you'll want to get to know are the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) and SPDR Portfolio S&P 500 High Dividend ETF (NYSEMKT: SPYD) . Here's why.
Although many investors focus on dividends for current income, that doesn't mean they can't be used to identify growth opportunities. Basically, companies that are able to increase their dividends at a rapid clip are likely to be attractive from a growth perspective, too. The big benefit for investors is that the rapid dividend hikes help to increase the buying power of your income stream over time, even in the face of inflation . Investors focused on maximizing income might want to layer in some money for dividend growth stocks, too, for this very reason.
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These 2 Dividend ETFs Are a Retiree's Best Friend