First Trust Vest Vest Smid Rising Dividend Achievers ETF: A Low-Cost Way to Tap into Rising Dividends
The First Trust Vest Vest Smid Rising Dividend Achievers ETF (Ticker: DIV) is a unique exchange-traded fund (ETF) that offers investors a low-cost way to tap into the dividends of companies with a history of consistently increasing their dividend payouts. With a current dividend yield of 2.38% and a total expense ratio of just 0.10%, DIV is an attractive option for income-seeking investors.
What is the First Trust Vest Vest Smid Rising Dividend Achievers ETF?
The First Trust Vest Vest Smid Rising Dividend Achievers ETF is an index-based ETF that tracks the performance of a dividend-focused index, which is designed to provide exposure to high-quality companies that have a track record of increasing their dividend payouts. The index is composed of at least 200 widely traded stocks with a history of rising dividend payments, which are selected based on their dividends, cash flow growth, and profitability.
Why Invest in the First Trust Vest Vest Smid Rising Dividend Achievers ETF?
There are several reasons why investors may consider allocating a portion of their portfolio to the First Trust Vest Vest Smid Rising Dividend Achievers ETF:
- Income Generation: With a dividend yield of 2.38%, DIV offers investors a relatively high income stream compared to traditional dividend-focused funds.
- Diversification: The fund’s diversified portfolio of at least 200 stocks provides investors with a way to spread their risk and reduce their exposure to any one particular stock or industry.
- Low Costs: With a total expense ratio of 0.10%, the First Trust Vest Vest Smid Rising Dividend Achievers ETF is one of the most cost-effective ways to invest in a dividend-focused portfolio.
- Tax Efficiency: As an ETF, DIV is passive, which means it doesn’t have to constantly buy and sell securities, resulting in lower taxes and fees for investors.
Recently Announced Dividend and Performance
As of the date of this article, the First Trust Vest Vest Smid Rising Dividend Achievers ETF has announced a dividend of CAD 0.1265 per unit, representing a 2.38% yield. The fund’s performance has been strong, with a 3-year return of 14.45% and a 5-year return of 12.21%.
Conclusion
The First Trust Vest Vest Smid Rising Dividend Achievers ETF is a unique and attractive option for income-seeking investors looking to tap into the dividends of high-quality companies with a history of consistently increasing their dividend payouts. With a low total expense ratio of 0.10%, a dividend yield of 2.38%, and a diversified portfolio of at least 200 stocks, DIV is a great way to add income and diversification to a portfolio while minimizing costs.
Note: The information and opinions expressed in this article are those of the author and do not constitute financial advice. It is important for investors to conduct their own research and consult with a financial advisor before making any investment decisions.
