Even under the worst case scenario regarding the looming fiscal cliff, dividend ETFs are still projected to remain popular even with a rise on the dividend tax rate. According to S&P Capital, corporate America is expected to choose to increasingly utilize cash for special dividends before the new law takes effect, or for stock repurchases.
Other comparable dividend ETFs:
- iShares Dow Jones Select Dividend (NYSEArca: DVY)
- Vanguard Dividend Appreciation ETF (NYSEArca: VIG)
- WisdomTree Total Dividend (NYSEArca: DTD)
SPDR S&P Dividend ETF
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own DVY.