Forget SCHD: 3 Overlooked Dividend ETFs Yielding Over 5% That Deserve Your Attention
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Forget SCHD: 3 Overlooked Dividend ETFs Yielding Over 5% That Deserve Your Attention
"These stocks are genuine dividend stocks paying higher yields, and they do so without gimmicks like call options with tech exposure. Alternatives are worth paying serious attention to as SCHD is already up big and may not have much more room to maneuver."
"KBWY invests in real estate investment trusts (REITs), and these REITs are some of the most under-estimated investment vehicles in the current environment. We are no longer in the year 2008, and the industry has learned a lot. It is provably more resilient, as REITs kept on paying higher dividends through record interest hikes in 2022 and 2023."
"For dividend investors, this spells opportunity because REITs are mandated to return at least 90% of their earnings to shareholders as dividends to maintain their tax-free status. I see double-digit gains in the coming quarters as rising real estate prices, declining interest rates, and treasury yields, plus more attractive dividend yields from REITs, all coalesce into a boon for KBWY."
While established dividend ETFs like SCHD have performed well, diversification across alternative dividend vehicles offers better risk management. KBWY focuses on REITs, which are underestimated investment vehicles offering genuine dividend income without gimmicks. REITs have proven resilient through recent interest rate hikes and are mandated to distribute at least 90% of earnings to shareholders. Recent market conditions—declining interest rates, rising real estate prices, and attractive dividend yields—create favorable conditions for REIT investments. KBWY offers a 9.49% dividend yield with a low 0.35% expense ratio. Alternative dividend ETFs present opportunities for investors seeking higher yields and growth potential beyond traditional dividend stocks.
Read at 24/7 Wall St.
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