Dividend ETFs Or High-Yield Dividend Stocks | Which Alternative Is Better?

I’ve received a mail on my Facebook page from one of my readers. Here is what he wrote:

“From what I have read you focus mostly in quality individual stocks that have good dividends. In your opinion, are there any good high yield dividend index ETFs? I don't have a lot of time to watch the markets and individual stocks so I am basically a long term investor with little time to manage. I do reinvest dividends and continually add and increase my investments.

Also, I am about 7 years from retirement. In post retirement, would you recommend continuing to invest in high yield dividend stocks and living on the dividend? Should this be individual stocks or Index ETFs? I appreciate your opinion.”

Yes I am focused on high-quality dividend growth stocks. So I have no knowledge about good ETFs to recommend. I'm not really sure if it makes sense to buy an ETF. Sure if you have only a few thousand dollars but only with $10k it makes sense to buy single stocks and hold them to receive the dividend. In a recent article about “How to invest 15,000 and get diversified”, I’ve described how to proceed. ETFs have their eligibility. They have pros and cons. A nice site about dividend investments with related ETF articles and income focus is Seeking Alpha.

If you are 7 years away from your retirement, I wouldn’t recommend you to buy or hold high-yield stocks. It’s very dangerous and my experience is that most of the high-yield stocks are no high-quality stocks. Here I answered a question about "Why High-Yield stocks produce losses".

So, if you buy them and they go down, you have a problem because the business model is often not qualified enough to recover and the dividends will be reduced.

It’s too easy to write about your risk exposure without having information about your wealth situation. If you don’t need the money for your living standard and you like to speculate because it’s fun for you and you enjoy it, then it makes sense to look for riskier stocks. But I wouldn’t do this because investing should bring profits and make you happy in your retirement age.

If you have any further questions, to not hesitate to contact me. If you like my answer, please give me a Facebook Like. You can also subscribe to my free e-mail list or follow me on Facebook or Twitter.

Happy Investing!

Tom

Recent Insights on High Dividend Yield Stocks - Trusts And Funds With Recent Dividend Announcements

Experts say that investing is not difficult if you have money, you should choose and purchase shares of stocks. In this selection you should have good knowledge about high dividend yield stocks. The dividend yield is an important consideration if you are looking to invest in stocks for an income stream in addition to investing in stocks to gain by a rising stock price.

Dividend Announcements:

- BLK Muni Yield New Jersey Fund (NYSE: MYJ): - It announced a monthly dividend. On Friday, March 15th to on Monday, April 1st it will pay a dividend of $0.07 per share. The dividend yield is 5.39% with $0.89 annual dividend. The ex dividend date is Wednesday, March 13th.

- Black Rock Real Asset Trust (NYSE: BCF): - It announced quarterly dividends. On Friday 14^th march to on Thursday 28^th march it will pay a dividend $0.22 per share. The yield is 8.77% with 0.89 dividends. The ex dividend date of this dividend is Wednesday, March 13th.

- Nuveen Diversified Commodity Fund (NYSE: CFD): - It announced monthly dividend. On Thursday, 28^th March to on Monday, 1^st April it will be paid a dividend of $0.15 per share. The dividend yield is 8.51% with $1.74 dividend. The ex dividend date of this dividend is Tuesday, March 26th.

- Nuveen Quality Preferred Income Fund (NYSE: JTP): - It announced a monthly dividend. On Friday, 15^th March to on Monday 1^st April it will be paid a dividend of $0.05 per share. The dividend yield is 6.60% with $0.60 annualized dividend. The ex dividend date is Wednesday, March 13th.

- Blackrock High Income (NYSE: HIS): - It announced a monthly dividend. On Friday, 15^th March to on Thursday, 28^th March it will be paid a dividend of $0.02 per share. The dividend yield is 7.51% with $0.18 dividend. The ex dividend date is Wednesday, March 13th.

-Invesco Van Kampen Dyn Cr Opp Fund (NYSE: VTA): - It announced monthly dividend. On Monday, 11^th March to on Thursday, 28^th March it will pay a dividend of $0.08 per share. The dividend yield is 6.79% with $0.90 dividend. The ex dividend date is Thursday, March 7th.

- Invesco Van Kampen Senior Income Trust (NYSE: VVR): - It announced monthly dividend. On Monday, March 11th to Thursday, March 28th it will pay a dividend of $0.03 per share. The dividend yield is 6.47% with $0.37 dividend. The ex dividend date is Thursday, March 7th.

- PIMCO High Income Fund (NYSE: PHK): - It announced monthly dividend. On Monday, March 11th to on Monday, April 1st it will pay a dividend of $0.12 per share. The dividend yield is 11.93% with $1.46 annual dividend. The ex dividend date is Thursday, March 7th.

- AGIC Convertible and Income Fund II (NYSE: NCZ): - It announced monthly dividend. On Monday, March 11^th to Monday, April 1st it will pay a dividend of $0.09 per share. The yield is 11.93% with $1.02 annual dividend. The ex dividend date is Thursday, March 7th.

- Invesco Value Municipal Income (NYSE: IIM): - It announced monthly dividend. On Monday, March 11^th to Thursday, 28^th March it will pay a dividend of $0.08 per share. The dividend yield is 5.62% with $0.90 annual dividend. The ex dividend date of this dividend is Thursday, March 7th.

- BlackRock MuniYield Pennsylvania Insured (NYSE: MPA): - It announced monthly dividend. On Friday, 15^th March to Monday 1^st April it will pay dividends of $0.07 per share. The dividend yield is 5.57% with annual $0.89 dividend. The ex dividend date is Wednesday, March 13th.

- John Hancock Patriot Premium Div Fund II (NYSE: PDT): - It announced monthly dividend. On Monday, 11^th March to Thursday 28^th March it will pay dividends of $0.08 per share. The dividend yield is 6.43% with $0.91 dividend. The ex dividend date is Thursday, March 7th.

- Nuveen New Jersey Investment Quality Muni (NYSE: NQJ): - It announced a monthly dividend. On Friday, 15^th March it will pay a dividend of $0.07 per share. The dividend yield is 5.25% with $0.80 annual dividend. The ex dividend date is Wednesday, March 13th.

These are the dividend paying stocks with high dividend yield. For more information regarding top dividend stocks visit the site here.

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