With dividend ETFs, a stable, passive income can be achieved in the long term. The risk is reduced by regular distributions and wide spread over dividend -strong companies. ETF savings plans also enable the entry with small amounts, ideal for conservative and return-oriented investors.
• Stable, passive income through ETFs
• Wide spread over dividend -strong companies
• Simplified entry over ETF savings plans
What is a dividend strategy?
A dividend strategy pursues the goal of achieving regular income from the distributions of companies. In the form of dividends, companies pour out part of their profits to shareholders. In contrast to other strategies that rely on pure price gains, this procedure enables continuous income, regardless of the development of share prices. Companies that pay dividends are often established and profitable corporations with stable business models. The so-called dividend aristocrats are particularly interesting. These are companies that have continuously increased their dividends over 10 years or more, which indicates solid finances and reliable business models, explains the Portal Justetf.
Why dividends?
ETFs bundle numerous dividend -strong companies, which can reduce the risk of a failure of individual titles. The global alignment of many dividend ETFs ensures additional geographical diversification. One example is the SPDR S&P Global Dividend Aristocrats ETF, which invests in global dividend aristocrats. These companies have increased their dividends for many years, which promises stability and reliability, according to the industry magazine ETF News.
Safe possibility with a balanced risk
Buying dividend ETFs is an efficient way to regularly benefit from dividends. About ETF-Savings plans Small amounts can also be invested monthly. This reduces the risk of poor timing, since the cost average effect bought more shares when the courses are low and less if the courses are high. According to Sparkasse, the price fluctuations can be compensated for over a longer period of time.
A list of Justetf shows that among the global dividend ETFs, the Vanguard FTSE All-World High Dividend Yield ETF, which invests in dividend-strong companies worldwide and offers investors access to global income, is particularly popular with long-term investors, since it is stable Combined yields and global diversification.
Key figures for selecting a dividend ETF
When choosing a dividend ETF, various key figures play a central role to ensure the long-term profitability and safety of the system. One of the most important key figures is the dividend yield, which shows the percentage of the current share price in the form of dividends. According to the Börse online, dividend growth is also relevant, which indicates how much percent the distribution increases annually. Investors that are on an income from regular dividends should also pay attention to the total cost rate (ter), since high administrative costs can reduce the return.
Editor finance.net
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