There’s no such thing as unwelcome income, and despite rumors that income is hard to find, there are a number of ETFs putting out juicy yields.
Here are three dividend-focused ETFs with yields north of 8%:
SDIV Gets You a Basket of Equities
This unique dividend-generating superstar utilizes an equal-weight index instead of the more common dividend or cap-weighted methodologies. There are benefits to this approach, as it breaks the link between stock price and allocation and avoids the pitfalls that come with a small number of holdings. SDIV has a global scope, another big differentiator that sets it apart from other high-yield funds.
With its 8.96% dividend yield and broad exposure to equities, SDIV has remarkable tactical utility. This is a fund you can snag for quick, short-term tactical reasons or use as a long-term core holding.
If You Need Income, Mind Your BIZD-ness
BIZD has a dividend yield of 8.19% and utilizes a market cap-weighted index of U.S. BDC companies. These private equity companies invest in the debt and equity of mid-sized firms. BDCs are regulated investment companies, which means that they don’t pay corporate income tax on profits prior to distribution, which creates especially sound dividend yields. These types of companies can be risky, but their solid dividends and liquidity make up for their inherent risk and sensitivity to interest rates.
BIZD’s index focuses on the most liquid BDCs and weights them by market cap.
The Midstream Can Be a Key Player in Your Income Stream
With oil prices continuing to explode and global energy shortages all over the news, a lot of attention will be paid to the energy sector. The midstream is a unique corner of the energy market that mostly generates revenue through energy infrastructure. Midstream companies will gather, transport, process, and store crude oil and natural gases. Because their revenue model is through often-guaranteed contracts, they aren’t as tethered to commodity prices as other companies in the energy space. As a result, midstream companies tend to be an excellent source of low-risk, steady dividends. Many midstream companies are MLPs, which have a unique tax structure that allows them to avoid federal income taxes.
AMLP’s dividend yield of 8.03% makes it the rare investment option that can get high yields with a ton of risk.
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