5 Dividend ETFs to Hold Even During a Market Downturn

"To find dividend ETFs that may weather the market storms you're going to want to put a magnifying glass to these securities. You may want to look into dividend ETFs that screen for companies with strong financials and performance, as well as low volatility. You'd also want to look for ETFs that have histories of consistently paying and increasing dividends over time. Additionally, you may also want to pay close attention to how well diversified these ETFs are across segments of the market"

"Even if you've amassed a substantial amount of retirement savings over the years, unpredictable events such as market downturns can take a serious crack at your nest egg. And if you're not careful, this means your earnings could easily be eroded and the chance of you outliving your savings increases. But to hedge against potential market downturns while maintaining a steady stream of income in retirement, many investors turn to dividend ETFs. But not all dividend ETFs are created equal."

Market downturns can significantly erode retirement savings and increase the risk of outliving those savings. Dividend ETFs can provide a hedge and steady income in retirement, but notable differences exist across funds. Priority criteria include screening for companies with strong financials and performance, low volatility, and histories of consistently paying and increasing dividends. Adequate diversification across market segments, including defensive sectors like healthcare, improves resilience during stress. The Vanguard Dividend Appreciation ETF (VIG) targets companies with year-over-year dividend growth and holds substantial positions in information technology, financials, and healthcare, with technology benefiting from recent AI adoption.

Read at 24/7 Wall St.