"Investing in dividend stocks is a portfolio allocation strategy that, frankly, hasn't worked wonders for investors in recent years (or for the better part of two decades now). Growth stocks have reined supreme, and continue to drive the vast majority of the overall earnings and cash flow (and capital appreciation upside, for that matter) of large indices. For investors who think that will remain the case for years to come, it's okay to stop reading here."
"Targeting high-yielding, established U.S.-based dividend players with sector biases toward utilities and financials, the iShares Select Dividend ETF (DVY) is an excellent option for investors looking for consistent dividend income and relatively high yields across the sectors this ETF is overweight. With a 3.4% dividend yield, this ETF provides fixed income-like yield with a relatively attractive expense ratio of 0.38%. Now, that fee is higher than the other two options on this list."
Dividend stocks have underperformed for nearly two decades as growth stocks have driven most earnings, cash flow, and capital appreciation in major indices. Dividend-focused strategies may become more attractive if interest rates decline materially and balance-sheet quality gains importance. Three top dividend-focused ETFs can suit investors expecting that shift. iShares Select Dividend ETF (DVY) targets high-yielding, established U.S. dividend players with sector biases toward utilities and financials, offering a 3.4% yield and a 0.38% expense ratio. DVY emphasizes dividend sustainability, reliable cash flow, and a value-oriented, defensive sector allocation to mitigate downside risk.
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