When markets get volatile, keep your portfolio safe with dividend ETFs.
For one, these ETFs and their holdings can help smooth out the volatile ride when markets drop. Two, they offer exposure to a diversified portfolio of respected companies that have a history of paying dividends, which can provide a steady stream of income.
Look at the iShares Core High Dividend ETF (SYM: HDV), for example.
With an expense ratio of 0.08% and a yield of 3.41%, the HDV ETF tracks the investment results of an index composed of relatively high dividend-paying U.S. equities.
Some of its 75 holdings include Exxon Mobil, Johnson & Johnson, Progressive Corp., Chevron, AbbVie, Philip Morris, AT&T and Coca-Cola to name just a few.
Since bottoming out at around $105.19 in April, the HDV ETF rallied to a recent high of $121.67. Now at $120.85, we’d like to see the ETF rally to $140 next. While we wait, we can collect its yield. The ETF last paid a dividend of just over 93 cents on June 20. Before that, it paid a dividend of just over 79 cents on May 21.
JPMorgan Equity Premium Income Fund (SYM: JEPI)
Another solid dividend ETF is the JPMorgan Equity Premium Income Fund.
With an expense ratio of 0.35% and a yield of 8.38%, the ETF generates income through stock dividends and options premiums.
Some of its 126 holdings include Progressive Corp., Visa, Mastercard (NYSE: MA), Southern Company (NYSE: SO), UnitedHealth Group (NYSE: UNH), Trane Technologies (NYSE: TT), AbbVie and Amazon (NASDAQ: AMZN), to name just a few.
Since bottoming out at around $48.37 in April, the JEPI ETF raced back to $56.76. From here, we’d like to see it rally to $65 a share over the long haul.
Fidelity High Dividend ETF (SYM: FDVV)
We can also look at the Fidelity High Dividend ETF. With an expense ratio of 0.16% and a yield of 3.04%the FDVV ETF tracks the Fidelity High Dividend Index, which is designed to reflect the performance of stocks of large- and mid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends.
Some of its 107 holdings include Apple, Microsoft, Nvidia, JPMorgan Chase, Visa, Exxon Mobil, Philip Morris and Procter & Gamble, to name a few.
Bonus: Chart of Day
The U.S. healthcare system has been broken for some time.
In fact, according to 70% of U.S. adults, as noted by Time, the health care system is failing to meet their needs in at least one way.
High costs, ridiculous wait times, poor communication, a severe lack of personalized care, and the impersonal nature of the system is a concern for many, with millions of patients feeling more like a number than a real person.
Most of us are exhausted from it. And we need for it to change.
Not helping, multi-billion-dollar pharmaceutical companies have been exerting considerable influence over the U.S. FDA, raising concerns the agency is putting pharmaceutical company profits and needs well ahead of patients.
However, things could soon change.
Helping, Health and Human Services Secretary Robert F. Kennedy Jr. is not only transforming U.S. health policy, he’s also restructuring the focus of some regulators and researchers, and reshaping the mission of his department to focus more on alternative medicine.
Plus, more Americans are also far more proactive about their health, looking for ways to maintain their well-being, leading to their willingness to consider supplements.
We’re also seeing substantial demand for self-care digital platforms, fueled by health awareness, convenience, personalization, and cost-savings issues. Also, with more Americans now far more proactive about their health, they’re looking for ways to feel and look good, with digital platforms offering quick, convenient information.
In short, a major health revolution is now underway in North America.
One way to trade the shift is by investing in the Global X Health Tech ETF (SYM: HEAL).
With an expense ratio of 0.50%, the HEAL ETF invests in companies transforming healthcare through cutting-edge technology. The fund targets four sub-themes: AI-enabled drug discovery, smart medical devices, tech-enabled consumer healthcare, and healthcare analytics and software solutions, as noted by Global X ETFs.
Some of its top holdings include Hims & Hers Health, Insulet Corp., Resmed, Dexcom, and Tempus AI to name just a few.
Up Next: This could help pay for your bills
There's a little-known financial trick you can use to help you...
Pay for your purchases from your favorite brands...
Pay for your meals at your favorite restaurants...
Pay to fill up your gas tank...
And more.
Found this helpful? Share it with others.
Written by Ian Cooper