Dividend stocks are a great way to grow your portfolio’s value over time. However, while they will produce income, many of them won’t likely produce strong returns.
When you think of some of the best stocks on the markets, you think of Amazon.com, Inc. (NASDAQ:AMZN) or Shopify Inc (TSX:SHOP)(NYSE:SHOP) which have produced significant returns for their investors but don’t pay a dividend, because they need that money to fund their future growth.
ETFs generally focus on one or the other, but a new one from Toronto-Dominion Bank (TSX:TD)(NYSE:TD) aims to help address that issue. The TD Active Global Enhanced Dividend ETF (TSX:TGED) gives investors some modest dividend income, with a yield averaging 2.8%, and it also holds many growth stocks as well.
A couple of its largest holdings include Microsoft Corporation (NASDAQ:MSFT) and Visa Inc (NYSE:V), two stocks that while they do pay dividends, they’re mainly purchased for their growth potential. The ETF also holds Amazon shares as well.
Overall, the fund gives investors a lot of diversification with only 58.8% of the portfolio coming from U.S.-based companies and 23% from the European Union. And if we look at the mix of industries, there’s an even broader mix of stocks there.
Financial services, while the biggest holding, only make up 18.8% of the total portfolio. Tech stocks are 18.3% of the total holdings while healthcare accounts for 11.3%.
The stocks held are also good value buys, averaging a price-to-earnings multiple of just 19. The ETF provides investors a good mix of value, growth and dividends, making it an appealing option for any portfolio.
