ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Dividend Channel
  2. In Tempestuous Times, Dividends are a Life Vest
Dividend Channel
Share

In Tempestuous Times, Dividends are a Life Vest

Evan HarpSep 23, 2021
2021-09-23

The FOMC meeting concluded yesterday, with members predicting an annual inflation rate of 4.2% by the end of the year. 3.4% was the forecast in June, with 2% being the long-term target. During times of inflation, dividends can act as a hedge.

Though the Fed admits that inflation has come in hotter than anticipated, Fed Chairman Jerome Powell expressed confidence. “These bottleneck effects have been larger and longer-lasting than anticipated,” Powell said. “While these supply effects are prominent for now, they will abate. And as they do, inflation is expected to drop back toward our longer-run goal.”

Despite Assurances From Fed, Uncertainty Abounds

There are a number vexing signs that the market could be heading for trouble. An August 2021 job report showed only 235,000 jobs added — far behind the 750,000 anticipated. The US economy is expected to only grow 5.9% this year, a substantial downshift from the projection of 7% just three months ago. A debt-ceiling debate and the uncertain future of the infrastructure bill could also impact the markets. Though Evergrande didn’t upend markets as much as initially feared, the situation suggests that the global economy remains precarious.

The ongoing pandemic is also at play. “The path of the economy will depend significantly on the course of the virus,” the Fed said in a statement. “Progress on vaccinations will likely continue to reduce the effects of the public health crisis on the economy, but risks to the economic outlook remain.”


Content continues below advertisement

Dividend ETFs That Can Ride Out Market Uncertainty

When the economic waters are choppy, dividend growth companies can be a life vest. Here are three dividend growth ETFs that could help your portfolio float through troubled waters.

  • The SmartETFs Dividend Builder ETF (DIVS C+) focuses on quality companies that generate moderate income and consistent dividend growth that — importantly — exceeds inflation. Only half of DIVS’s weight is allocated to U.S. companies, with the other half of their exposure lying in other markets. DIVS prioritizes companies that have cash flow and tidy balance sheets over flashy, high-yield numbers. Also, as an actively managed fund, it is well-suited to the moment.
  • The Vanguard Dividend Appreciation ETF (VIG A) has $65.99 billion AUM. It offers exposure to large-cap companies mostly tilted toward consumer staples, healthcare, and industrials. Only companies that have 10+ years of dividend growth are included in the fund. It charges six basis points.
  • The iShares Core Dividend Growth ETF (DGRO A) tracks the Morningstar Dividend Growth Index and offers low-cost exposure to U.S. stocks focused on dividend growth. This fund can be a core income generator, and its holdings include dividend growth staples such as Exxon Mobil (XOM), Johnson & Johnson (JNJ), and Microsoft (MSFT).

For more news, information, and strategy, visit the Dividend Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X