
"There are plenty of dividend stocks out there for equity investors looking to maximize their overall total portfolio returns. Dividends can play a significant role in generating long-term returns, with around one-third of the cumulative returns of the stock market coming from dividends over the long-term. Now, this current market is dominated by high-growth stocks, many of which don't provide meaningful yields (if there are dividends paid out, many top tech companies have a yield well less than 1%)."
"Vanguard is one of my top ETF providers I prefer, in part due to this company's history in being the first and one of the broadest ETF providers in the market. I've got another top pick on this list that comes from Vanguard as well, but the Vanguard Global Ex-U.S. Dividend Growers ETF (VIGI) is one of the top stocks on my watch list right now."
"What I like about this top ETF is the fact that VIGI explicitly invests in top dividend-paying stocks outside of the U.S. That's because I think too many investors (and myself can be included in this group, at least in the past) have allocations toward U.S. stocks that are outside the guardrails of conservative investing principles. International exposure in many Americans' portfolios has declined in recent years, partly driven by a steep run-up in U.S. asset prices."
Dividends contribute roughly one-third of cumulative long-term stock market returns and can significantly boost total portfolio performance. The current market favors high-growth stocks that often pay minimal yields, with many top tech companies offering yields below 1%, which can disappoint passive income seekers. Broad dividend-focused ETFs provide diversified exposure for investors targeting long-term passive income and total returns over multi-decade horizons. Vanguard's Global Ex-U.S. Dividend Growers ETF (VIGI) targets dividend-paying stocks outside the United States, addressing diminished international allocations among many U.S. investors. International equities recently outperformed U.S. stocks, supporting the case for non-U.S. dividend exposure.
Read at 24/7 Wall St.
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