There is an exchange traded fund (ETF) that primarily seeks dividend income by investing only in dividend paying stocks. The iShares Dow Jones Select Dividend Index (DVY) does just that and, The Motley Fool Staff tells that the yield is 3.1% with the lowest expense ratio in its class at 0.40%. DVY invests in 100-115 securities and is heavily weighted in financial and utility companies. This ETF can be a welcome addition to any income-oriented portfolio.
For full disclosure: Some of Tom Lydon’s clients own DVY.
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