Top Dividend ETFs To Invest In

Dividend ETFs for long term investing

JPMorgan Equity Premium Income ETF (JEPI)

The JPMorgan Equity Premium Income ETF (JEPI) stands out as a unique income-focused fund with substantial assets totaling over $31 billion as of December 2023. JEPI employs a dual strategy to provide consistent monthly income to investors. Firstly, it invests in a portfolio of low-volatility, large-cap US stocks renowned for their reliable dividend payouts. Secondly, the fund actively engages in selling covered calls on the S&P 500 Index, generating premium income while limiting potential upside in case of significant market surges.

Experts have highlighted below some key reasons to invest in JEPI in 2024

The top 10 holdings of this ETF are mentioned below in the table

Regional/Sectoral Analysis

Breakout from the downtrend channel

The chart reveals a breakout from the downtrend channel established in June 2022. The price has confidently exceeded the upper channel line, signaling a potential transition from bearish to bullish momentum. Furthermore, the price-maintenance positions above both the 50-day and 200-day EMAs indicates a potential for sustained upward momentum.

The iShares Preferred & Income Securities ETF (PFF)

The iShares Preferred & Income Securities ETF (PFF) offers a unique investment approach in 2024, blending aspects of stocks and bonds. As a preferred stock, PFF provides a stable income stream similar to traditional corporate bonds but carries some risk, lacking default protection and holding a secondary position in case of liquidation.

PFF's appeal lies in prioritizing dividends over common stocks, ensuring investors a steady income. However, it's crucial to note the increased risk without default protection. In liquidation, preferred stockholders, including PFF investors, rank behind common stock owners, highlighting the inherent risk but also the potential for enhanced income.

As preferred stock is commonly used by large enterprises for financing, PFF has a notable concentration, with three-quarters of its assets in the financial sector. This aligns with the practice of financial industry entities issuing preferred stocks.

As of December 27, 2023, PFF has a year-to-date return of 2.47%, and its net asset value stands at $26.35 per share. With a reasonable expense ratio of 0.46%, PFF proves cost-effective for investors, showcasing financial performance and efficiency, and contributing to its attractiveness in the investment landscape.

The top 10 holdings of this ETF are mentioned below in the table

Regional/ Sectoral Analysis

PFF technical analysis

Clear break of the downtrend

The chart indicates a clear break of the downtrend that persisted since April 2022. The price has just recently surpassed the trendline, indicating a potential shift from bearish to bullish momentum.

VanEck Mortgage REIT Income ETF (MORT)

Investing in the VanEck Mortgage REIT Income ETF (MORT) in 2024 could be a smart move for several reasons that everyday investors can understand. Firstly, MORT focuses on companies that invest in mortgages rather than physical properties, offering a unique way to tap into the real estate market without owning actual buildings. What makes this ETF appealing is its potential for high dividends that is money paid out regularly to investors. Historically, these types of companies have offered higher dividend yields than other investment options, making them attractive for those looking to boost their income.

Additionally, MORT provides exposure to different parts of the mortgage market, such as agency mortgage-backed securities and commercial loans. This diversity can be beneficial for investors, spreading the risk across various areas of the mortgage sector. Furthermore, the ETF aligns with the evolving mortgage finance market, potentially positioning itself for gains as the industry changes. The VanEck Mortgage REIT Income ETF (MORT) has an expense ratio of 0.43%.

While the ETF has experienced some ups and downs, it has shown positive returns, aiming to finish the year in the black with around 5% returns. This performance, coupled with its focus on about 25 high-yield real estate stocks, might be enticing for investors seeking both growth and income.

The top 10 holdings of this ETF are mentioned below in the table

iShares International Select Dividend ETF (IDV)

Investing in the iShares International Select Dividend ETF (IDV) in 2024 presents a compelling opportunity for investors looking to diversify their income portfolio beyond U.S. borders. One of the primary attractions of IDV is its ability to offer exposure to international companies that often yield higher dividends than their domestic counterparts. The ETF's 100-stock portfolio includes stalwarts like Rio Tinto, Eni, and British American Tobacco, providing investors with a diverse basket of well-established, large-cap income players akin to U.S. blue-chip stocks.

One of the notable advantages of IDV is its simplification of the complexities associated with investing in international stocks. Rather than navigating the intricacies of individual positions and dealing with erratic payment schedules, investors can benefit from global dividend income through a single, well-managed fund. This streamlining makes it an attractive option for those seeking international income without the hassle.

Moreover, the current market conditions offer an additional incentive for considering IDV in 2024. Some international markets, particularly in Europe, are trading at lower valuations compared to the U.S., potentially presenting bargain opportunities for dividend-seeking investors. This aligns with the fund's focus on providing exposure to developed market stocks that have historically offered robust dividend yields.

The ETF's performance further strengthens the investment case, with a year-to-date return of 9.67% as of December 22, 2023.

The top 10 holdings of this ETF are mentioned below in the table

Sector Weightings

Regional Analysis

• The breakout above $26.60 is seen as a positive sign, suggesting that the previous downtrend may be coming to an end

• This breakout could be an indication of a potential shift in the investment trend, presenting an opportunity for investors to benefit from a potential upward movement

SmartETFs Dividend Builder ETF (DIVS)

Investing in the SmartETFs Dividend Builder ETF (DIVS) in 2024 seems like a good idea. It's actively managed and focuses on strong companies with a solid track record. The portfolio has around 35 equally important positions, prioritizing financial strength and future dividend growth.

What's interesting about DIVS is its global diversification, with 60% in U.S. stocks and 40% in international ones. This not only spreads the risk but also lets you benefit from different market opportunities.

DIVS stands out for looking at more than just historical growth; it considers the economic health of each company. It has a five-star rating from Morningstar and has performed well, with a 6.39% return as of December 26, 2023, beating its benchmark, the MSCI World Index. Despite being around since 2021, DIVS has gathered $29.994 million in assets, showing growing interest in its unique approach.

DIVS provides a good mix of sectors, covering cyclical, defensive, and technology. This diversification helps you navigate different economic conditions and industry trends. With a 0.65% expense ratio, DIVS is a cost-effective choice for an actively managed fund, letting you potentially benefit from expert management without high fees.

The top 10 holdings of this ETF are mentioned below in the table

Regional Analysis

Sectoral Analysis

The price is about to break a key resistance zone, suggesting potential for upward movement. A double bottom pattern, where the price hits a low twice before rising, signals bullish momentum. The subsequent upward trend is supported by a trendline drawn from the double-bottom lows, adding further confirmation.

DIVS technical analysis

First Trust Dorsey Wright Momentum & Dividend ETF (DDIV)

Investing in the DDIV ETF in 2024 looks promising for a few reasons. Firstly, it focuses on strong-performing stocks, which historically do well over time. If the market continues to rise in 2024, DDIV could offer strong returns.

Secondly, DDIV targets high-dividend-yielding stocks, providing a potential income source in a scenario where traditional options like bonds may be less attractive due to rising interest rates. This adds appeal for investors wanting both growth and income.

DDIV's emphasis on large-mid cap stocks brings stability, especially compared to smaller companies. Despite being a smaller ETF, DDIV uses the respected Dorsey Wright momentum strategies, adding sophistication to its approach. Its unique blend of a value tilt and a mid-cap high dividend yield portfolio sets it apart.

The careful stock selection process, based on forward price momentum and the top 50 highest dividend yields, highlights a thoughtful strategy. DDIV's well-diversified portfolio, spanning large, mid, and small-cap names with a tilt toward cyclical, positions it well for economic recovery. Trading at about 12 times earnings and yielding around 3%, DDIV offers a mix of growth potential and income, making it an appealing choice for a strategic and diversified investment portfolio.

The top 10 holdings of this ETF are mentioned below in the table

Regional Analysis

DDIV technical analysis

Clear break of the downtrend

The chart indicates a clear break of the downtrend that persisted since April 2022. The price has convincingly surpassed the trendline, indicating a potential shift from bearish to bullish momentum. Additionally, breaking through a significant resistance zone at Price of 30.00 further supports the bullish outlook, as this level previously impeded upward movement.

BlackRock Equity Dividend Fund (MADVX)

Investing in MADVX in 2024 could be a compelling choice for income-focused investors looking for a combination of high dividend yield, exposure to US equities, sector diversification, active management, and a track record of consistent dividends. These factors collectively make MADVX a noteworthy option for those seeking a balance of income and growth potential in their investment portfolio.

MADVX, represented by its ticker symbol, is the BlackRock Equity Dividend Fund Institutional Shares. It holds a Morningstar rating of 4 stars, further attesting to its performance. The fund has demonstrated an ability to outperform its benchmark, the Russell 1000 Value Index, over the past three years, adding credibility to its potential for delivering returns.

The BlackRock Equity Dividend Fund, in 2024 may be worthwhile for income-seeking investors based on several factors that cater to specific goals and risk tolerances.

Experts have highlighted below some key reasons to invest in MADVX in 2024

The top 10 holdings of this ETF are mentioned below in the table

Best Stock brokers

1

9.4/10

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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Minimum deposit:

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The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.

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2

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The eOption broker (eoption.com) is an American stockbroker headquartered in Glenview, Illinois. It has been operating since 2007 and is a member of FINRA (CRD#: 7297/SEC#: 8-21765) and SIPC. It specializes in options trading and also acts as an intermediary in trades involving the popular securities classes. The company offers low trading commissions, super-fast execution of orders, and modern platforms with an advanced set of analytical tools. In 2020-2021, eOption was recognized as the best options broker by several resources such as Investopedia, The Tokenist, Benzinga, Investormint, and NerdWallet.

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•You cannot trade Pink Sheet and Bulletin Board stocks.

•There is no online chat on the company's website.

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