We believe dividend growth investors can generate superior long-term returns by investing in high-quality dividend stocks, such as the Dividend Aristocrats.
This article will discuss why income investors who do not want to buy individual stocks, should consider dividend ETFs. We also discuss our top picks among the major dividend ETFs.
First, investors should get to know the basics of exchange-traded funds. ETFs are similar to mutual funds, in that they allow investors to purchase shares of a basket of stocks at once.
ETFs come in all shapes and sizes–including small-caps, mid-caps, and large-caps; growth ETFs, value ETFs, or income ETFs; and ETFs that invest in specific market sectors or industries.