The 3 Best Dividend ETFs (Buy & Hold)

hey everybody welcome back to whiteboard finance my name is marco and i'm here to help you master your money and build your wealth in today's video we're going to be talking about the three best dividend-paying etfs that you can consider adding to your portfolio for the long term just as a side note this video is sponsored by simply safe and we'll get to that in a minute here so dividend investing is a great way to build a large nest egg or a potential stream of income in retirement however most people don't want to burn the midnight oil and take all the time or effort to pick individual stocks so what we have here is the beauty of the etf so if you don't know what an etf stands for that simply stands for exchange traded fund and all that is is essentially a basket of stocks that tracks or mimics a certain benchmark so in this video we're going to talk about three etfs with a bonus etf at the end of the video and there's gonna be certain criteria for each etf i'm gonna go over the description and strategy of the etf i'm going to go over the msci esg analytics rating and if you don't know what that is i'll explain in the video and then each etf we're going to talk about their dividend yield their expense ratio the number of holdings their top 10 sectors and also their top 10 holdings stay tuned okay number one is ticker symbol vym this is vanguard's high dividend yield etf this basically mimics the ftse high dividend yield index and it basically tracks us-based companies that are not reits and that weights them by market cap so if you don't know what a reit is a reit is simply a real estate investment trust and i would be weary of investing in those right now depending on the property type so i'm actually kind of happy that this etf does not contain any reits at the time of this recording so vym offers a diversified conservative approach to getting you high yields at a low cost so what do i mean by that the dividend yield is 2.66 percent which is pretty good the expense ratio is 0.06 percent if you don't know what an expense ratio is this is simply the annual amount of dollars that it costs you to hold this kind of a fund so say for example you have ten thousand dollars in this fund this fund costs you six dollars a year to be invested in if you have a hundred thousand it's 60 bucks a year if you have a million it's 600 so on and so forth that's how these funds make money which is extremely cheap if you want to compare that to a traditional financial advisor they're typically one percent per year so if you have 10 grand with the financial advisor that's 100 bucks you have 10 grand with this that's six bucks big difference the number of holdings is 391 so you're well diversified its top sector is healthcare and its top holding is johnson and johnson at the time of this recording full disclosure i personally own this in my m1 finance portfolio if you want to check it out take a look at the link below if you want my free training on m1 finance take a look at the link below again this is a sponsored video by simply safe which we're going to get into right now i do not do any sponsorships on this channel unless i use the product personally have my own money in it or trust it with my life so check out this spot by simply safe simply safe is an incredibly effective reliable home security system that will make sure your home is safe you just order it online or over the phone and it's delivered right to your home and you set it up yourself in under an hour you just stick the sensors exactly where you need them and from there your home is professionally monitored 24 7 if anything happens they'll make sure the police gets called they've got sensors to cover every window room and door and plus a lot of great extras like water sensors temperature sensors and hd cameras you can see a sensor right there it's all really easy to use and you get around the clock protection for just 50 cents a day with no contracts they've even won u.s news and world reports best overall home security system of 2020. so the reason i chose to get simply safe is because i believe in the product otherwise i wouldn't have them as a sponsor on the channel this is my entire business right here you guys you can see the video portion and also the audio portion right here this is a company that i believe in and i use daily the setup process was super easy you basically just install the home base right here pretty much where your door is this is the door to my studio you got this right here you can set it if you're at home if you're away and this whole process took about 40 minutes if i remember correctly you just stick the sensors which you can see right here this is a sensor for the window so if this window is open while it's armed that'll actually notify the police same thing with this right here this is a microphone that knows when glass shatters that'll actually notify the police as well so you can see here this is the base station um this is kind of like the brain of the operation that talks to the thing by the door over there and then you can arm it with the keypad you also have other things like temperature sensors so if you live in a cold climate or you live in a hot climate this will actually prevent your pipes from freezing if your hvac or your heat goes out so basically you can see here that if you want to actually look at the sensors and how they work if i were to open this door right here [Music] you can hear that right there beeping that's that sensor right there so basically this whole property is covered so i actually have a funny story and let me uh disarm this i'm gonna get this off camera real quick uh my wife didn't know i installed this and when she came into the studio the cops actually came because she didn't know the code so it absolutely does work so i just wanted to show you guys the system i'm still using it a year later and i'm still incredibly happy with simply safe okay number two is ticker symbol schd this is the schwab's u.s dividend equity etf this is a solid etf because it only invests in companies that have at least a 10-year track record of paying out dividends so you can't even be included in this etf if you haven't consistently paid out dividends for 10 years or more so basically the msci rating as we mentioned earlier is 6.25 this is pretty strong that gives it an a and if i didn't allude to this earlier the rating basically goes from triple c which is the worst all the way to triple a which is the best so the last two funds vym and schd have a grade a which is very good you can see here that the dividend yield is two point two two percent which is healthy uh the expense ratio is also zero point zero six percent six basis points that's very good very cheap the number of holdings is 93 so significantly less than vym and it's basically the top 10 sectors number one is consumer non-cyclical so if you don't know what consumer non-cyclical is think of your toothpaste your shampoos your soaps things that are going to be bought whether the economy is doing good or not these are typically recession resistant products and recession resistant companies and to prove that point its top holding is actually ups the delivery service so if you saw what happened during the pandemic people were ordering on amazon and e-commerce more than ever just because they weren't going out to the store so you can see why this could be a number one holding of the etf at the time of this recording okay number three is og original gangster triple o g vig if you don't know what an og is uh that first sentence probably made no sense and you're just staring at your screen right now not even laughing the people that understand what i just said are probably at least cracking a smile so vig a lot of war stories he's been through a lot of you know things on the block he's uh i'm gonna edit all this out this is no i'm leaving it i'm leaving it this is my channel let's go dude vig is an og full disclosure i personally hold vig the reason i hold vague is obviously not for the dividend yield it's a lot smaller than vyms but they're also focused on the companies that have raised their dividends for 10 years however it's also focused on dividend growth so if you actually pair this up against vym this is outperformed vym even when you consider the yield as well so the msci rating is incredibly safe at 7.03 the dividend yield is a little bit lower than what we've seen so far at 1.82 percent uh the expense ratio is the same at 0.06 percent number of holdings is 225. you can see here that the top sector is actually consumer cyclical so if you don't know what consumer cyclical is this is actually cars airlines casinos all this stuff sounds incredibly risky especially with everything that's happened with the pandemic right well hopefully these things will bounce back and that's why vig could be seen at a slight discount prior to this recording obviously in march so with the growth component this is actually outperformed vym as i mentioned and you can see here that the top holding at the time this recording is microsoft which has been a channel favorite since i started this channel bonus bonus okay so you stayed this long you stayed for the simply safe ad you stayed through my dad jokes you stayed through the uh non-edits and the rawness of this video you're the real mvp i appreciate you that's why you are being rewarded my friends check out hdv this is ishare's core high dividend etf so this basically tracks a dividend weighted index of 75 high yielding u.s stocks that are basically stream screened excuse me for high dividend sustainability and high earnings potential okay so as you can see here that leads me to believe why it has a good msci rating um the esg analyst rating of a 6.59 out of 10. the dividend yield is one of the higher ones we've seen at 3.43 the expense ratio is .08 which is not much more expensive than vig and a couple other ones it has 75 holdings but hold on it's not all gravy and rainbows and unicorns the things that concern me with this one are that it's top sector it's top holding is basically energy which you either love or hate energy and then it's top holding is a t which is a debt laden potential disaster so with that being said its second biggest holding is exxon mobil which has been okay i mean it's done well with dividends but we all know that oil is on its way out not anytime soon probably not in our lifetimes relax but those are the only two yellow flags for this etf that i think but i'm just the guy on youtube do your own due diligence so let's get to the conclusion okay so my thoughts just to wrap up the video very quickly these can all serve a purpose in your portfolio they are all well diversified which is simply the nature of etfs themselves you're just you're buying one share and holding a basket of stocks with that one share the other thing is is that the low expense ratio on all these is super super cheap to own so you can invest in this over the long term and your portfolio is not going to be destroyed by fees i made that analogy earlier in the video with the financial advisor who's charging you one percent per year these are all significantly less usually 92 to 94 basis points less per year then finally at the time of this recording we're looking at the end of july weeble actually has a promotion with two free stocks valued up to fourteen hundred dollars if you go deposit down there i will receive a small commission for that at no additional cost to you and you're getting two free stocks it's a win-win if you downvoted the video because of this that makes you a thank you everybody for watching i really appreciate it and as always have a prosperous day and share the video with one friend oh marco makes a commission from recommending things oh i'm gonna download the video [Music] you

Channel: Marko - WhiteBoard Finance

Views: 329,621

Keywords: dividend paying etfs, best dividend paying etfs, best dividend paying, best dividend paying index funds, best dividend paying stocks, 3 best dividend paying etfs, dividend etf investing, dividend etf vs growth etf, dividend etfs 2020, vym etf, vig etf, vig etf review, schd etf review, schd etf, hdv etf, whiteboard finance

Id: 8B6WqiGhfvU

Length: 11min 45sec (705 seconds)

Published: Wed Jul 22 2020