Seeking Alpha is a great place to get investment ideas and knowledge. A recent post by Eli Hoffmann, SA News Editor is a good example. He summarized the S&P 500 firms that paid regular cash dividends in Q2, which was a record payout. The Q2 2018 payout was an 11% increase over the Q2 2017 payout.
Why does this matter? If you invested in good ETF’s that invest in these companies, it is likely that your income increased by something like 8-11% over the previous year. Do you like getting a raise? I do.
Hoffmann noted that “89 companies boosted dividends in Q2, vs. 67 companies a year ago. 43 companies retained the ’aristocrat’ status of 25 years of consecutive dividend raises.
While this all bodes well for the fundamentals, the S&P 500’s yield of 1.92% isn’t going to attract serious yield seekers. It’s down from 1.97% a year ago but recovered from a steep drop that put it at 1.76% in January.
Top dividend-specific ETFs by assets under management (AUM): VIG, VYM, DVY, SDY, SCHD, HDV and IDV
Top dividend-specific ETFs by yield: KBWD, SRET, ALTY, DIVA, SPFF, PFFR, SDIV, and DRW.”
I own shares of VYM and HDV. I think SCHD is also a good choice. Although they don’t appear in this list, I also like DVY, DGRO, PFF, FENY, FHLC, FTEC and FUTY. Just know what you are buying and consider growing dividends as one of your criteria for a bulk of your investment portfolio.
VYM’s top holdings include: (I also own shares in the italicized companies.)
Microsoft Corp, JPMorgan Chase & Co, Exxon Mobil Corp, Johnson & Johnson, Intel Corp, Wells Fargo & Co, Chevron Corp, Pfizer Inc, Cisco Systems Inc, AT&T Inc, Verizon Communications Inc, Boeing Co and Procter & Gamble Co. Dividend growth is an easy way to earn more every year by doing nothing.