The 3 Best Dividend ETFs (Buy & Hold)

we’re going to be talking about the three best dividend-paying etfs that you can consider adding to your portfolio for the long term just as a side note this video is sponsored by simply safe

and we’ll get to that in a minute here so dividend investing is a great way to build a large nest egg or a potential stream of income in retirement however most people don’t want to burn the midnight oil and take all the time or effort to pick

individual stocks so what we have here is the beauty of the etf

so if you don’t know what an etf stands for that simply stands for exchange traded fund

and all that is is essentially a basket of stocks that tracks or mimics a certain benchmark

so in this video we’re going to talk about three etfs with a bonus etf at the end of the video

and there’s gonna be certain criteria for each etf i’m gonna go over the description and strategy of the etf i’m going to go over the msci esg analytics rating and if you don’t know what that is i’ll explain in the video and then each etf we’re going to talk about their dividend yield their expense ratio

the number of holdings their top 10 sectors and also their top 10 holdings stay tuned okay number one is ticker symbol vym

this is vanguard’s high dividend yield etf this basically mimics the ftse high dividend yield index

and it basically tracks us-based companies that are not

reits and that weights them by market cap so if you don’t know what a reit is a reit is simply a real estate investment trust

and i would be weary of investing in those right now depending on the property type

so i’m actually kind of happy that this etf does not contain any reits at the time of this recording

so vym offers a diversified conservative approach to getting you high yields at a low cost

so what do i mean by that the dividend yield is 2.66 percent which is pretty good

the expense ratio is 0.06 percent if you don’t know what an expense ratio is this is simply the

annual amount of dollars that it costs you to hold

this kind of a fund so say for example you have ten thousand dollars in this fund this fund costs you six dollars a year to be invested in

if you have a hundred thousand it’s 60 bucks a year if you have a million it’s 600

so on and so forth that’s how these funds make money which is extremely cheap if you want to compare that to a traditional financial advisor they’re typically one percent per year so if you have 10 grand with the financial advisor that’s 100 bucks you have 10 grand with this that’s six bucks big difference

the number of holdings is 391 so you’re well diversified its top

sector is healthcare and its top holding is johnson and johnson at the time of this recording

full disclosure i personally own this in my m1 finance portfolio

if you want to check it out take a look at the link below if you want my free training on m1 finance take a look at the link below

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okay number two is ticker symbol schd this is the schwab’s u.s dividend equity etf

this is a solid etf because it only invests in companies that have at least a 10-year track record of paying out dividends

so you can’t even be included in this etf if you haven’t consistently paid out dividends for 10 years or more so basically the msci rating as we mentioned earlier is 6.25

this is pretty strong that gives it an a and if i didn’t allude to this earlier the rating basically goes from triple c which is the worst

all the way to triple a which is the best so the last two funds vym and schd have a grade a which is very good you can see here that the dividend yield is two point two two percent which is healthy

uh the expense ratio is also zero point zero six percent

six basis points that’s very good very cheap the number of holdings is 93 so significantly less than vym and it’s basically the top 10 sectors number one is consumer non-cyclical so if you don’t know what consumer non-cyclical is think of your toothpaste your shampoos your soaps things that are going to be bought whether the economy is doing good or not these are typically recession resistant products and recession resistant companies

and to prove that point its top holding is actually ups

the delivery service so if you saw what happened during the pandemic people were ordering on amazon and e-commerce more than ever

just because they weren’t going out to the store so you can see why this could be a number one holding of the etf at the time of this recording

okay number three is og original gangster

triple o g vig if you don’t know what an og is uh

that first sentence probably made no sense and you’re just staring at your screen right now not even laughing the people that understand what i just said are probably at least cracking a smile

so vig a lot of war stories he’s been through a lot of you know

things on the block he’s uh i’m gonna edit all this out this is no i’m leaving it i’m leaving it this is my channel let’s go

dude vig is an og full disclosure i personally hold vig

the reason i hold vague is obviously not for the dividend yield it’s a lot smaller than vyms

but they’re also focused on the companies that have raised their dividends for 10 years

however it’s also focused on dividend growth so if you actually pair this up against vym

this is outperformed vym even when you consider

the yield as well so the msci rating is incredibly safe at 7.03

the dividend yield is a little bit lower than what we’ve seen so far at 1.82 percent

uh the expense ratio is the same at 0.06 percent

number of holdings is 225. you can see here that the top sector is actually consumer cyclical

so if you don’t know what consumer cyclical is this is actually cars airlines casinos

all this stuff sounds incredibly risky especially with everything that’s happened with the pandemic right well hopefully these things will bounce back and that’s why vig

could be seen at a slight discount prior to this recording obviously in march so with the growth component

this is actually outperformed vym as i mentioned and you can see here that the top holding at the time this recording is microsoft which has been a channel favorite since i started this channel bonus bonus

okay so you stayed this long you stayed for the simply safe ad you stayed through my dad jokes you stayed through the

uh non-edits and the rawness of this video you’re the real mvp i appreciate you that’s why you are being rewarded my friends

check out hdv this is ishare’s core high dividend etf

so this basically tracks a dividend weighted index of 75

high yielding u.s stocks that are basically stream

screened excuse me for high dividend sustainability and

high earnings potential okay so as you can see here that leads me to believe why it has a good

msci rating um the esg analyst rating of a 6.59 out of 10.

the dividend yield is one of the higher ones we’ve seen at 3.43 the expense ratio is .08 which is not much more expensive than vig and a couple other ones

it has 75 holdings but hold on it’s not all gravy and rainbows and unicorns the things that concern me with this one are that it’s top sector it’s top holding

is basically energy which you either love or hate energy

and then it’s top holding is a t which is a debt

laden potential disaster so with that being said its second biggest holding is exxon mobil

which has been okay i mean it’s done well with dividends but we all know that oil is on its way out

not anytime soon probably not in our lifetimes relax

but those are the only two yellow flags for this etf that i think

but i’m just the guy on youtube do your own due diligence so let’s get to the conclusion

okay so my thoughts just to wrap up the video very quickly these can all serve a purpose in your portfolio they are all well diversified which is simply the nature of etfs themselves

you’re just you’re buying one share and holding a basket of stocks with that one share

the other thing is is that the low expense ratio on all these

is super super cheap to own so you can invest in this over the long term and your portfolio is not going to be destroyed by fees

i made that analogy earlier in the video with the financial advisor who’s charging you one percent per year these are all significantly less usually 92 to 94 basis points less per year then finally at the time of this recording we’re looking at the end of july

weeble actually has a promotion with two free stocks valued up to

fourteen hundred dollars if you go deposit down there i will receive a small commission for that at no additional cost to you

and you’re getting two free stocks it’s a win-win if you downvoted the video because of this

that makes you a thank you everybody for watching i really appreciate it and as always

have a prosperous day and share the video with one friend

oh marco makes a commission from recommending things

oh i’m gonna download the video you.

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