Friday, 11 October 2024 10:09

Two Great Dividend ETFs for Income Investors

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Investors seeking high-yield dividend income have traditionally favored Dividend Aristocrats and Dividend Kings, but the rise of ETFs has created new alternatives. Many ETFs now offer competitive yields and enhanced diversification, making them attractive to income-focused investors. 

 

The JPMorgan Equity Premium Income ETF (JEPI) and Schwab US Dividend Equity ETF (SCHD) stand out for their strong yields and market exposure. JEPI, an actively managed fund, employs a covered call strategy and delivers monthly payouts, while SCHD, a passively managed fund, tracks the Dow Jones U.S. Dividend 100 Index and provides quarterly dividends. 

 

Both funds have demonstrated solid performance, even in volatile markets, with JEPI boasting a 12-month yield of 7.55% and SCHD offering 3.34%. 


Finsum: ETFs offering a reliable alternative to individual dividend stocks, balancing income generation with long-term market resilience, are a great income source in the current environment. 

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