3 Dividend Stocks New Investors Can Buy Today for Stable Returns

0 2

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.

The post 3 Dividend Stocks New Investors Can Buy Today for Stable Returns appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Ishares Sp Tsx Cdn Dividend Aristocrats Etf?

Before you consider Ishares Sp Tsx Cdn Dividend Aristocrats Etf, we think you’ll want to hear this.

Our nearly S&P/TSX market doubling* Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could be a springboard for any portfolio.

Want to see if Ishares Sp Tsx Cdn Dividend Aristocrats Etf made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.

See the 10 Stocks
* Returns as of 4/14/22

setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Where to Invest: Defensive Stocks or 1 Inflation-Fighting ETF?
3 Set-it-and-Forget-it ETFs to Buy
Retirees: 3 Ways to Create a High Passive-Income Stream Using ETFs
2 of the Best Canadian ETFs to Buy to Protect Your Capital
Gen Z Investors: Make Millions by Investing in This 1 TSX Stock

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.

 123 total views,  2 views today

Leave A Reply

Your email address will not be published.

Generated by Feedzy