3 Dividend Stocks New Investors Can Buy Today for Stable Returns

These three dividend stocks offer safety and security in both returns and passive income for new investors not knowing where to start today.

| More on:
Business man on stock market financial trade indicator background.

Image source: Getty Images

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe owns BMO Canadian High Dividend Covered Call ETF. The Motley Fool has no position in any of the stocks mentioned.

More on Dividend Stocks

Senior Man Sitting On Sofa At Home With Pet Labrador Dog
Dividend Stocks

RRSP Investors: 2 Stocks to Buy Now for a Personal Pension Fund

RRSP investors can find top TSX dividend stocks at cheap prices today.

Read more »

Cogs turning against each other
Dividend Stocks

1 Passive-Income Stock to Counter Volatility

Looking for a stock that can counter volatility now and tomorrow? This stock is a reliable option for growth and…

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

A Top REIT for High-Yielding Income

This top REIT on the TSX offers investors a considerable amount in shareholder dividends through its massive dividend yield.

Read more »

investment research
Dividend Stocks

Young Investors: Create Cash Flow With This Top Dividend Stock

If you're a young investor looking for cash flow, you need a strong dividend stock and solid banking program designed…

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

3 Superb Dividend Stocks I’m Ready to Buy

The market is full of great options for income-seeking investors. Here are three superb dividend stocks to buy now.

Read more »

Payday ringed on a calendar
Dividend Stocks

Gen Z Investors: Create a Stable Passive-Income Stream of $188/Month for Retirement

This passive-income stock is perfect for Gen Z investors who don't have much to invest but want to see stable,…

Read more »

exchange-traded funds
Dividend Stocks

2 ETF Bargains You Shouldn’t Miss in 2022

Index ETFs are only discounted when there is a market-wide slump, which is rarer than sector-specific dips, so you should…

Read more »

House Key And Keychain On Wooden Table
Dividend Stocks

2 Real Estate Stocks to Add Growth to Your Portfolio

The right real estate investments, whether they are properties or real estate stocks, usually offer a decent mix of income…

Read more »