Dividend stocks are some of the best ways to get into investing, especially as a new investor. These companies provide payments, even when returns aren’t doing so well. But that doesn’t mean you should be fine with little returns.
That’s why today I’m going to focus on dividend stocks that are exchange-traded funds (ETF). ETFs are like having an entire portfolio hand-picked by a group of professionals with a solid goal in mind. In fact, that’s exactly what it is. Today, I’m going to discuss three that have seen solid returns, and high dividends to boot.
BMO High Dividend ETF
BMO Canadian High Dividend Covered Call ETF (TSX:ZWC) is a great place to start among dividend stocks. It offers a yield of 7.2% right now, handed out monthly to its investors. Its top holdings are in energy and finances, providing a smooth path to growth.
The company’s dividend has more than doubled over the last decade, so investors can also look forward to not just stable but growing dividends. And that’s while still having the protection of a low-volatility stock. Shares are up 13.52% in the last year and growing at a steady rate, even with all this volatility on the marketplace.
iShares High Dividend Aristocrats ETF
Next up we have iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSX:CDZ). This company has a smaller yield, but that comes with the stability of knowing that yield will continue to be well placed for years to come. The company narrows its focus only to Dividend Aristocrats. That means these dividend stocks have risen their dividend each year for the last 25 years.
You can pick up dividend stocks like this one with a yield of 3.07% as of writing. Furthermore, it too has risen a solid 10.7% over the last year. As for dividend growth, the company has increased that dividend by 50% over the last decade alone.
Vangaurd High Yield ETF
Finally, Vanguard FTSE Canadian High Dividend Yield Index ETF (TSX:VDY) is similar to both the other dividend stocks, but gives you a nice middle ground. It has a high yield, but doesn’t just focus in on Dividend Aristocrats so you get growth as well. That being said, it chooses its companies carefully to ensure payments keep coming in.
Vanguard is one of the dividend stocks therefore offering a slightly higher 3.83% dividend compared to iShares and slightly higher growth at 25% compared to BMO. Perhaps this is due to its focus on Canadian stocks on the Financial Times Securities Exchange. But regardless, it’s one of the dividend stocks doing quite well. Meanwhile, its dividend has more than doubled by 121% in the last decade.
Foolish takeaway
You don’t have to get in on just one of the dividend stocks you read about. And you don’t have to choose volatility over safety. These three ETFs offer stability, growth and passive income for new investors wanting it all. You could buy any or all three of these companies and be looking at stable growth for the rest of your life.
