Dividend efits sensible or nonsensical?
What do you think of the following ETFs to add to your portfolio for regular cash flow? Some of these dividend ETFs have good dividend growth, others have outperformed the broad market at times. I am quite undecided. The Vaneck in particular, which is celebrated so much on YouTube, is an under performer in terms of price.
Here is a comparison with the $HMWO (+1,24%) (since the launch of the most recent ETF). The worst performer was Vaneck and the best was Fidelity US Income.
Here in figures. Whereby the Vaneck has even beaten the MSCI World over a 3-year period, probably because it was the only one to generate positive returns in 2022. I would find the Vaneck interesting because of its high European weighting with a low US weighting and the dividend growth.
Since the Fidelity US Quality Income has a 100% US positioning, I don't think the comparison with the MSCI World is very conclusive and therefore here again with the S&P 500.
Here is the basic data plus yield including distributions.
And finally the distribution data, in my opinion there is no clear winner here.
Fun fact, if you had all four ETFs in your portfolio, you would have 10 months of dividend distributions per year. However, you would also have a lot of overlaps and therefore a high cluster risk.
Final thought:
When I started my research, there were many more dividend ETFs to choose from, but many of them ultimately fell through. Originally, I had hoped to come to a clear conclusion. However, after a thorough analysis, I have to admit that I'm still not sure whether investing in dividend ETFs really makes sense. In view of the advantages and disadvantages, I tend to view such investments critically and possibly avoid them altogether.
Do you have dividend ETFs in your portfolios? If so, which ones?
