Dividend ETFs, or dividend exchange-traded funds, offer a convenient way to invest in multiple dividend-paying stocks through a single security. These ETFs hold shares in companies that regularly distribute a portion of their profits to shareholders. Investors can choose between growth dividend ETFs, focusing on companies with a track record of increasing dividends, and high-yield dividend ETFs, which emphasize immediate income. They are popular for retirees or those seeking steady income and potential growth. However, dividend payments are not guaranteed and may fluctuate based on market conditions.
The Best of Both: Growth and Income Combined
