Can you recommend some etfs and reits that offer good dividends
10/12/2024 02:26am
For ETFs and REITs that offer good dividends, here are some recommendations:
**ETFs with Good Dividends**
1. **Vanguard Dividend Appreciation ETF (VIG)**: This ETF has a dividend yield of 1.8% and focuses on companies with a history of increasing dividends.
2. **Fidelity High Dividend ETF (FDVV)**: It offers a dividend yield of 4.7% and selects stocks with strong fundamentals that sustain dividends.
3. **Schwab U.S. Dividend Equity ETF (SCHD)**: While it underperforms the market, it provides a decent dividend yield and is suitable for income-focused investors.
**REITs with Good Dividends**
1. **Realty Income (O)**: Known as "The Monthly Dividend Company," it offers a high yield of 5.1% and has increased its dividend for 108 consecutive quarters.
2. **SL Green (SLG)**: As a REIT, it must distribute 90% of taxable income as dividends, making it an attractive option for income-focused investors.
3. **Orion Office REIT Inc. (ONL)**: A penny stock with a high yield, ranking among the best dividend stocks to buy now, offering a unique opportunity for investors.
**Additional Considerations**
When choosing ETFs and REITs for their dividends, consider the following:
1. **High Dividend Yield**: While attractive, very high yields can indicate a higher risk of default or lower growth prospects.
2. **Consistent Dividend Growth**: Focus on companies or funds that have a history of increasing dividends, as this often signals financial stability and management's confidence in the company's future.
3. **Low Payout Ratio**: A lower payout ratio suggests that a company or REIT is retaining more earnings than distributing as dividends, which can be beneficial for long-term growth.
4. **Strong Financial Health**: Look for ETFs and REITs with low debt levels, such as Debt-to-Equity Ratios below 0.5, to ensure they can sustain their dividend payments.
By considering these factors, you can find ETFs and REITs that provide good dividends and align with your investment goals and risk tolerance.