Boost Your Income! Why This Closed-End Fund Surpasses Vanguard's High Dividend Yield ETF
Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is a fairly easy to understand exchange-traded fund (ETF) with an income focus. There's just one glaring problem with the ETF: Its yield isn't exactly huge at just 2.6%. For dividend investors looking for a diversified portfolio of dividend stocks to buy, Gabelli Dividend & Income Trust (NYSE: GDV), a closed-end fund, could be a good alternative. Here's why.Vanguard High Dividend Yield ETF keeps things simple, which is a huge plus when it comes to index-based ETFs. The first step in creating the portfolio is to take the list of U.S. stocks and eliminate any stocks that don't pay a dividend. The second step is to include the highest-yielding 50% of dividend-paying stocks in the portfolio. Very easy to understand, and the approach is clearly aligned with the ETF's name.Image source: Getty Images.Continue reading
Vanguard High Dividend Yield ETF (NYSEMKT: VYM) is a fairly easy to understand exchange-traded fund (ETF) with an income focus. There's just one glaring problem with the ETF: Its yield isn't exactly huge at just 2.6%. For dividend investors looking for a diversified portfolio of dividend stocks to buy, Gabelli Dividend & Income Trust (NYSE: GDV), a closed-end fund, could be a good alternative. Here's why.
Vanguard High Dividend Yield ETF keeps things simple, which is a huge plus when it comes to index-based ETFs. The first step in creating the portfolio is to take the list of U.S. stocks and eliminate any stocks that don't pay a dividend. The second step is to include the highest-yielding 50% of dividend-paying stocks in the portfolio. Very easy to understand, and the approach is clearly aligned with the ETF's name.
Image source: Getty Images.
