3 Reasons to Hold on to Your Dividend ETF

Investors seeking capital preservation, steady income and low costs would do well to keep a dividend ETF in their portfolio

Dimitar Boyadzhiev 21 August, 2019 | 9:01AM

three reasons

While it is tempting for income-seekers to chase the highest yield, investors would do better to keep an eye on the long-term. Successful income investing should be a balance between achieving an optimal income stream and protecting the capital over the long term. It is not about chasing short-term performance, but this is what most dividend investors did over the past year.

With technology stocks leading the charge, many investors piled into funds focused on the sector, only to suffer in the sharp sell-off at the end of 2018. Others have focused on attractive but unsustainable headline yields, only to see a number of firms cut their pay outs.

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About Author

Dimitar Boyadzhiev  is a Passive Strategies Research Analyst for Morningstar

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