What is a high-dividend ETF?


Quick Answer

A high-dividend ETF is an exchange-traded fund that seeks to produce a high dividend yield for investors by investing in stocks that consistently pay high dividends. A high-dividend ETF usually contains stocks that have a history of paying above-market dividends or blue-chip stocks that are regarded as extremely safe.

Continue Reading

Full Answer

A dividend ETF is classified according to the stocks it contains; some ETFs contain only domestic stocks, while others exclusively contain international stocks. Risks associated with ETFs include capital losses and dividend cuts. Before investing in a specific dividend ETF, an investor should be certain that the ETF matches his goals and risk tolerance.

Learn more about Investing

Related Questions