Investors continue looking for new sources of income and yield, but tried and true dividend stocks should remain part of that equation. Scores of exchange traded funds offer up exposure to dividend-paying stocks.
However, a series of interest rate hikes should not be viewed as an indictment of dividend stocks and exchange traded funds. Some dividend ETFs can help investors endure those shocks, including new ETFs such as the Fidelity Core Dividend ETF (NYSEArca: FDVV), which debuted in September.
Cementing its emphasis on dividend growth stocks, FDVV aims to hold large- and mid-cap dividend-paying stocks that are expected to continue to pay and grow their dividends. Component holdings have shown historically high dividend yields, low dividend payout ratios and high dividend growth. The ETF had $50.7 million in assets under management as of May 24th, according to issuer data.
FDVV currently yields almost 3.8%, an impressive number when considering this is not a high dividend strategy, but that high yield is not necessarily a cause for concern.