Megathread - ๐Ÿ”ฅ Dividend Fest ๐Ÿ”ฅ

As noted above I donโ€™t believe dividends are relevant to total returns, but if I did have a preference for dividend yield Iโ€™d probably go for an ETF like WQDS. The reason for this is it filters for quality as well as yield, which should help avoid stocks paying unaffordable/unsustainable dividends.

A bit more detail on this combination of Yield & Quality here:

One of the key concerns of yield-seeking investors is reductions in dividends. Investors can therefore look for stocks that are high yielding and quality companies, which we define as corporates with high returns-on-equity and low debt-to-equity ratios.

https://insights.factorresearch.com/research-dividend-yield-combinations/

In general if you want to invest in something like a factor itโ€™s probably simplest to invest in that directly via an ETF rather than trying to find individual stock(s) that reflects it. This gets you the exposure you want but without the unsystematic risk of an individual stock.

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