An exchange-traded fund (ETF) that focuses on dividend-paying stocks can be a great way to get some recurring income for your portfolio without taking on much risk. The WisdomTree U.S. High Dividend Fund (NYSE Arca: DHS) has a solid portfolio of high-yielding stocks that give investors exposure to energy, healthcare, consumer staples, financials, utilities, and other industries.
The ETF yields 3.3% and year to date, it has outperformed the markets, rising 7% in value while the S&P 500 has declined 16%. And with a modest expense ratio of 0.38%, it isn't an overly costly fund to own. All in all, this has been one of the best dividend investments that investors could have bought this year.
Among the ETF's top holdings include Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), and AbbVie (NYSE:ABBV). The fund has more than 300 holdings in its portfolio but the top 10 account for 47% of the ETF's entire weight. More than 90% of the fund is invested in large-cap stocks worth at least $10 billion, and just about all of its holdings are based in the U.S. as well, giving investors a good degree of safety.
The stocks the fund holds also aren't terribly expensive, with the ETF averaging a price-to-earnings ratio of 13 and a price-to-book multiple of less than three, and so investors are also getting some good bang for their buck with this ETF.
Overall, for investors looking for a safe way to collect an above-average dividend and get some broad diversification, the WisdomTree U.S. High Dividend Fund is a great option.
