"Cheap dividend ETFs are your best friend if you want to buy and hold for a long time. ETFs like the Vanguard Dividend Appreciation Index Fund ETF (NYSEARCA:VIG ) , State Street SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD ) , and Schwab US Dividend Equity ETF (NYSEARCA:SCHD ) offer you good dividend growth, dividend yields, and negligible fees that don't add up to a fortune over time. Instead of relying on one company's payout, you receive income from an entire basket of businesses."
"When those dividends are reinvested, they purchase additional shares, which in turn generate their own dividends. Over years and decades, this cycle creates a snowball effect that can transform modest initial investments into meaningful wealth. Thus, low-cost dividend ETFs can serve as the foundation for your portfolio, one that can last a lifetime. They have what it takes to deliver over decades, rain or shine. Investors are in a de-risking mood right now, so they can also serve as ballast for your portfolio."
Cheap dividend ETFs offer diversified exposure to multiple companies, producing income without relying on a single payout. Reinvested dividends buy additional shares that generate their own dividends, creating a compounding snowball over years and decades. ETFs such as Vanguard Dividend Appreciation (VIG), State Street SPDR S&P 500 High Dividend (SPYD), and Schwab US Dividend Equity (SCHD) combine dividend growth, yield, and very low fees. Vanguard's fees were recently lowered on many funds, with VIG at a 0.04% expense ratio, a five-year dividend growth rate of 9.15% and a 1.55% yield. Low-cost dividend ETFs can serve as long-term portfolio foundations and risk ballast.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]