“The bullish view would be that companies are raising dividends because the have too much cash to know how to put it all to work; the bearish view would suggest that they’re scared to put their cash to work in this economy, so they’re paying it out. Bulls and bears can argue about the whys and wherefores, but both sides are at least intrigued by the idea of cashing in on the trend,” Chuck Jaffe writes for the Star Telegram.
Many analysts are suggesting that long term investors consider generating a greater chunk of their income from stocks. When looking at dividend ETFs, analysts suggest that investors look for yields that are at the level of the S&P 500 and better, explains Jaffe.
“There are a lot of ways to get dividend yield in funds, but most people will want to go into something that has low volatility, that isn’t leveraged and that isn’t in industries they’re uncomfortable with,” said Michael Falk of Michael S. Falk Asset Consulting, in the report.
Dividend ETFs launched recently include:
- iShares High Divdiend Equity Fund (NYSEArca: HDV)
- Global X SuperDividend ETF (NYSEArca: SDIV)
- Guggenheim ABC High Dividend ETF (NYSEArca: ABCS)
Tisha Guerrero contributed to this article.