Is it time to invest in boring dividend stocks

Interesting take here:

The idea is that S&P went up mostly because AI companies went up. Money flown out of everything else and everything else is down and arguably “cheap”.

What’s a good dividend etf? Asking for a friend :slight_smile:


Only aware of HDLG - Invesco S&P 500 High Dividend Low Volatility ETF - not invested yet, but on my watch list and might be a time to buy…

For the UK:

UKDV - S&P UK Dividend Aristocrats ETF
IUKD - iShares FTSE UK Dividend ETF (I hold these)

Obviously, do your own research, etc etc.


I reckon so. I only buy boring dividend stocks but the past year has been a good time to accumulate. I suspect yields will tank once rates go lower.

RE: ETF I only have VHYL - has performed well. You can get higher yields


What would be a benefit of HDLG compared to some div Aristocrats etf?

I don’t know as I haven’t compared it with (nor am I aware of any) other US dividend Aristocrats etf.

I’ve been watching HDLG only because the index seemed to cover different companies from the usual S&P500 so offered some diversity.

I wouldn’t mind finding a decent cheap boring dividend ETF, to hold for a very long time.

Ideally it would largely replace my oversized high income sub-portfolio, giving me the freedom to focus on few more exciting individual stocks.

I 'll look into it again…

The downside with dividend etfs is that they have to follow rules around dividend yield (growth, quality, low volatility, momentum etc) which leads to increased turnover and costs. For example IUKD has an expense ratio of 0.40 Vs the FTSE 100 tracker at 0.07. 6% ISH Vs 4% ISH in yield, check the performance, it’s behind the FTSE 100 tracker. Also a global tracker is 0.12 expense ratio. (SWLD or VHVG). If you research HMWO (HSBC’s distribution version tracking msci dev world index index) on just etf, it gives you the dividend payout amounts since inception, the yield has more than doubled. Currently just under 2% for a fund that isn’t focused on dividends!!! Certainly worth a conversation and consideration for a low cost boring don’t have to worry tracker.

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So a cheap low cost SWAN tracker ETF, with 1.50% div yield, counts as dividend ETF?

You have a point, good angle to look at it.