Investing in an exchange-traded fund that invests in large cap dividend stocks can be a great way to secure passive income.
Additionally, investing in such an ETF will allow diversification of a portfolio so it becomes more immune to unsystematic risk. This type of risk is unique to a specific company or industry and can be mitigated through diversification.
Systematic risk on the other hand is a type of risk that impacts the broader market and can be mitigated by investing in international markets, but cannot be completely eliminated.
Check out two dividend ETFs that can help with unsystematic risk.
Schwab US Dividend Equity ETF SCHD is offering a dividend yield of 3.23% or $2.48 per share annually, making quarterly payments, with a solid track record of increasing its dividends for nine consecutive years.
The goal of Schwab US Dividend Equity ETF is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index.
The Schwab US Dividend Equity ETF’s top three holdings include Merck & Co Inc MRK 4.32%, Pfizer Inc. PFE 4.14%, and PepsiCo, Inc. PEP 4.11%, as of Sept. 30, 2022.
Vanguard High Dividend Yield ETF VYM is offering a dividend yield of 2.92% or $3.22 per share annually, through quarterly payments, with a strong track record of increasing its dividends for 11 consecutive years.
Vanguard High Dividend Yield ETF seeks to track the performance of the FTSE High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields.
The Vanguard High Dividend Yield ETF’s top three holdings include Johnson & Johnson JNJ 3.44%, Exxon Mobil Corp XOM 2.92% and JPMorgan Chase & Co JPM 2.44%, as of Sept. 30, 2022.
Image and article originally from www.benzinga.com. Read the original article here.