You Won't Find These Stocks in Dividend ETFs

The dividend differenceAt first glance, you might think that dividend ETFs would be pretty much identical. To a large extent, that turns out to be correct. The Vanguard High Dividend Yield ETF includes mega-caps Chevron and Coca-Cola near the top of its holdings list, as does Vanguard's other dividend ETF, Vanguard Dividend Appreciation. And while the SPDR S&P Dividend and iShares Select Dividend ETFs have some smaller companies in their top 10 holdings, they largely share the same holdings as their peers. But when you look closely at the entire portfolios of these ETFs, what you'll find most startling isn't what you see but rather what you don't see. Dividend ETFs have some glaring omissions that many dividend investors will want to remedy on their own. Let's take a look at what stocks are missing from most of the major dividend ETFs.... Read more