How Do ETF Dividends Work?

By: ETFdb
The theme of dividend investing has taken portfolios by storm, as ultra-low rates have forced investors to seek stable income elsewhere. As such, the growth of dividend ETFs has rapidly accelerated in recent years as investors have shown an increased appetite for these products. When it comes to dividend stocks, most investors have a firm grasp on the process of distributions and the key dates surrounding the payout, but the picture can get a little cloudy with an ETF that holds securities that all pay dividends at different times [for more ETF news and analysis subscribe to our free newsletter]. ETFs and Dividends For the most part, dividends are pretty straight-forward when it comes to ETFs. We’ll start off with the most basic example. The SPDR S&P 500 ETF is not only the most popular ETF in existence, but also a dividend-payer. According to its prospectus, the fund puts all [...] Click here to read the original article on ETFdb.com. Related Posts: S&P 500 ETFs: Comparing The “Twisted” Funds Why SPY Has No Love For Buffett And Berkshire Checking In On the 10 Largest ETFs Year To Date Are UITs Better Than ETFs? Breaking Down The S&P 500 ETF Price War
The theme of dividend investing has taken portfolios by storm, as ultra-low rates have forced investors to seek stable income elsewhere. As such, the growth of dividend ETFs has rapidly accelerated in recent years as investors have shown an increased appetite for these products. When it comes to dividend stocks, most investors have a firm grasp on the process of distributions and the key dates surrounding the payout, but the picture can get a little cloudy with an ETF that holds securities that all pay dividends at different times [for more ETF news and analysis subscribe to our free newsletter]. ETFs and Dividends For the most part, dividends are pretty straight-forward when it comes to ETFs. We’ll start off with the most basic example. The SPDR S&P 500 ETF is not only the most popular ETF in existence, but also a dividend-payer. According to its prospectus, the fund puts all [...]

Click here to read the original article on ETFdb.com.

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