Dividend funds, whether you own the as mutual funds or as Exchange-traded fund (ETF) can be a stressless way to invest in a boarder stock market. Here is why:
(1) Dividend fund /ETF can serve as both offence and defence way whether the stock market is in a bull or bear market. For example, if the stock or fund declines 2% but paid 2.75% as dividend. The overall gain for the investor of the fund / ETF is 0.75% without factoring the tax calculation
(2) Dividend fund / ETF usually consists of solid blue chips company that has long record of profitability and stability. Dividend fund / ETF can be a great defensive method for long term investor.
So, whether or not you are thinking of having dividend funds in your portfolio. I believe each investor should have a basket of solid blue chips dividend paid companies.
For Dividend ETF, here are what I have invested:
FTN.TO (Financial 15 ETF)
DFN.TO (Dividend 15 ETF)
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2 comments:
Since last July these funds are down 34%(FTN.TO) and 18%(DFN.TO). Leaves us wishing for more.
As of this year, FTN.TO is not paying dividend anymore due to the US Financial crisis. However, we still find DFN.TO is paying monthly dividend.
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