Updated: Oct 4, 2023, 12:14pm
Share dividends are a significant part of the stock market landscape, especially for investors – such as those in retirement – who are looking for a steady and reliable income stream.
Blighted by the darkest days of the Covid-19 pandemic, dividends have bounced back this year, with payments to shareholders worldwide reaching $1.6 trillion in 2022, according to the Janus Henderson Global Dividend Index.
Dividend investing is an accepted way of aiming to produce income. But constructing and managing a portfolio of suitable shares from which to achieve this can be time-consuming.
Investors who have neither the time nor the expertise to tackle this task themselves could consider buying into dividend exchange-traded funds (ETFs) that offer a potential sustainable cash flow from a diversified selection of stocks.
We’ve asked Ben Yearsley, investment director of Shore Financial Planning, to identify four funds from this sphere aimed at different investor profiles. Ben’s selections are presented in alphabetical order, along with fund details and the reasoning behind his choices. Fund sizes are as of 30 September 2023.
In the FAQs below, we look in more detail at what dividends are and how dividend ETFs work, including an explanation of ‘ongoing charge’.
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