These 3 ETF Stocks Offer Attractive Dividends, Combining Safety And Gains For Investors
For investors that are unsure of which stocks to buy or are looking to add risk to their portfolio with safety nets attached, electronically-traded funds (ETFs) that offer dividends may be the right choice.
These ETFs can shield an investor from a significant loss in their portfolio, and are typically broad based and track market returns. These funds can allow an investor to earn a passive income, generate long-term and short-term capital gains, while mitigating risk.
ETF Dividend Stock #1: Global X NASDAQ-100 Covered Call ETF (NASDAQ:QYLD)
Global X NASDAQ-100 Covered Call ETF is offering a monthly dividend yield of 12.2% or $2.171 per share annually, distributing monthly dividends for the past eight years. The Global X fund controls $7.24 billion dollars in assets and has an expense ratio of 0.60%, and allows investors to capture higher yields in periods of volatility.
Global X NASDAQ-100 Covered Call ETF follows a “covered call” or “buy-write” strategy, in which the fund allocates 80% of total assets to buy the stocks in the Nasdaq 100 Index and “writes” or “sells” corresponding call options on the same index.
Also Read: 5 REITs With A Dividend Yield Above 6%
ETF Dividend Stock #2: Vanguard S&P 500 ETF (NYSE:VOO)
Vanguard S&P 500 ETF is offering a quarterly dividend yield of 1.65% or $5.65 per share annually, distributing quarterly dividends since the fund's inception in 2010. Vanguard S&P 500 ETF is managing roughly $781 billion dollars in total assets with an expense ratio of 0.03%. The fund currently holds 503 stocks invested in a blend of value and growth Large-cap equities, employing a passively managed, full-replication strategy.
Vanguard S&P 500 ETF seeks to track the investment performance of the S&P 500 Index.
ETF Dividend Stock #3: iShares Core S&P 500 ETF (NYSE:IVV)
iShares Core S&P 500 ETF is offering a quarterly dividend yield of 1.74% or $5.12 per share annually, distributing quarterly dividends for the past twenty-two years. The ETF has approximately $308 billion dollars in total fund assets and is offering an expense ratio of 0.03%. The fund typically invests 80% of its assets in the securities of its index or in investments that have similar economic characteristics to the securities of its index and may invest 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents.
The iShares Core S&P 500 ETF seeks to track the investment results of an index composed of large-capitalization U.S. equities to be used as the core of a portfolio to seek long-term growth.