Getting A Bunch Of Dividends In One Place - InvestingChannel

Getting A Bunch Of Dividends In One Place

Proprietary Data Insights

Top Auto Manufacturer Searches This Month

Rank Name Searches
#1 Tesla 750,046
#2 Nio 399,149
#3 Ford 77,974
#4 General Motors 26,872
#5 Toyota 4,226

Baby, You Can Drive My Car 

But only if you pay for gas and make the payment…

Hip, hip, hooray. The average price for a gallon of gas nationally continues to decline, hitting $4.78 Wednesday. That’s down from $4.87 last week. Just doesn’t feel like you’re saving much when it still costs north of $60 to fill the tank on your average sedan. 

Speaking of the average. The typical monthly payment on a new car hit an all-time record of $712 in May, thanks to a combination of high interest rates and near-record new car prices. 

$47,148. That’s how much the average new car sold for in May. Up $472 from April.

Don’t bite off more than you can chew. It’s bad enough to hear about people paying $500-$600 a month for modest vehicles such as Corollas and Civics. It’s another story to know that roughly 12% of people who took out a loan on a car in June are paying over $1,000 a month

That’s a mortgage payment! 

Actually, scratch that. That used to be a mortgage payment! 

If there was ever a time to drive less and either not buy a car or resist the urge to go the luxury route, that time is now. Because there’s no relief in sight and it’d sure be nice to keep that cash you’re saving for a rainy day.

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ETF Investing

Getting A Bunch Of Dividends In One Place

Key Takeaways:

  • At all levels, ETF investing removes much of the guesswork from investing. 
  • You can go as broad or specific as you’d like with ETFs. 
  • In the present environment, look to ETFs that focus on dividends. 


As The Juice continues detailing the ins and outs of ETF investing this month, we turn to our sister newsletter, The Spill, to help us out.  

You can subscribe to The Spill here for free. Each day, The Spill delivers an unique investing idea to your inbox using our proprietary Trackstar database of the tickers financial pros and everyday investors are using for. 

Last week, The Spill highlighted a dividend ETF The Juice also thinks you should put on your radar. 

We’ll tell you exactly what it means to be a dividend ETF in a second, but first The Spill’s take on this potential investment:

SPDR Portfolio S&P 500 High Dividend ETF (SPYD) delivers cash flow at a time when stocks are becoming exceptionally cheap…

Dividend ETFs aim to deliver higher dividend payouts than the index average. SPYD is designed to measure the performance of the top 80 high dividend-yielding companies within the S&P 500 Index, based on dividend yield. 

The average market cap of the companies in SPYD is $59 billion. 

  • The index dividend yield is approximately 3.9%. 
  • The average price-to-earnings ratio (FY1) of companies in the portfolio is 13.52x.
  • The average price-to-book ratio of companies in the portfolio is 1.95x.
  • The estimated 3-5 Year EPS growth of companies in the portfolio is 7.75%

SPYD is a low-cost ETF that seeks to provide a high dividend income and an opportunity for capital appreciation.

ETFs Can Take Your Portfolio From Broad To Specific 

In Wednesday’s Juice, we introduced you to the most straightforward ETFs. They offer exposure to the broad stock market. From there, you can go in more focused and specialized directions without having to worry about selecting individual stocks on your own. 

So, a dividend ETF, as the name makes clear, owns stocks that pay dividends. The ETF The Spill likes buys relatively high-yield stocks, but only from well-established companies trading at reasonable, if not low valuations.  

Other ETFs that focus on dividend don’t necessarily go for high-yield. Instead, they simply buy solid companies that pay growing and sustainable dividends, regardless of yield. 

Some of these ETFs own a collection of real estate investment trusts (REITs) or companies with a strong track record of increasing their dividends, such as dividend aristocrats. These are companies that have raised their dividend payment every year for at least 25 consecutive years. 

There’s An ETF For That

Source: Google Finance

The Juice loves the ProShares S&P 500 Dividend Aristocrats ETF (NOBL), which tracks the performance of the stocks that make up the S&P 500 dividend aristocrats index. 

Both NOBL and SPYD have significantly outperformed the broader S&P 500 (SPY) over the last year. Impressive. 

The Bottom Line: If investing confuses you (or even if it doesn’t!), you have options. You don’t have to be an expert stock picker to put together a diversified portfolio that can stand the test of time. Not to mention stock market crashes and scary economic data.

A comprehensive ETF investing strategy can give you exposure to the broad market as well as a wide array of investing styles (dividends and dividend growth) and sectors. With just an ETF or two, you can collect all of your dividends in one place. 

Keep an eye on your inbox for that daily email you get from us. In our next installment on ETFs, we discuss how you can get exposure to specific sectors via ETFs.

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Then we urge you to sign up for our newsletter here

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