When looking for long-term yield, income investors have two basic choices: dividend stocks and dividend exchange-traded funds.
I prefer dividend ETFs. The payout tends to fluctuate a bit because investors are buying into entire baskets of stocks rather than a single name. And the names in that basket can change depending on the underlying index or, in the case of an actively managed fund, the decisions of a fund manager. But I’ll accept that increased uncertainty for the sake of diversification.
There are, of course, lots of great dividend ETFs out there. The three highlighted here are geared toward long-term investors, but each has a distinctive approach.
This post originally appeared at The Motley Fool.