Dividend ETF or Dividend Stocks?
Dividends have historically contributed about 40% of common stocks annual average returns. Reinvested dividends however have contributed almost 97% of S&P 500 total returns since 1871. Add to that the fact that retirees are looking for a better way to generate income than the low rates on bank deposits. Thus it is no surprise that investors’ interest in dividend investing is increasing.Two differing paths are presented to aspiring dividend investors. One path is to do it on your own. Another path is to trust the experience of an investment professional and invest in dividend funds or dividend etfs. In this article I would compare and contrast the two methods and also outline some of the most widely held alternatives for both scenarios.... Read more