In this article, we will take a look at the 5 best dividend ETFs in 2023. To see more such companies, go directly to 10 Best Dividend ETFs in 2023.
5. iShares UK Dividend UCITS ETF (NYSE:IUKD)
For those who are looking to invest in UK dividend stocks to diversify their portfolios, iShares UK Dividend UCITS ETF (NYSE:IUKD) is a decent option. The ETF gives exposure to high-yield UK dividend companies.
Some of the notable holdings of the fund include Rio Tinto Group (NYSE:RIO), British American Tobacco plc (NYSE:BTI) and Vodafone Group Plc (NASDAQ:VOD). Rio Tinto Group (NYSE:RIO) is also highly popular among smart money investors. Insider Monkey’s database of 943 hedge funds shows that 29 hedge funds had stakes in the company. The biggest stakeholder of Rio Tinto Group (NYSE:RIO) was Rajiv Jain’s GQG Partners which owns a $600 million stake in the company.
4. iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSE:CDZ)
Canadian dividend stocks are highly popular among income investors. iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSE:CDZ) is a decent option for such investors since the ETF gives exposure to Canadian dividend companies with at least five years of consecutive dividend increases. Some of the notable holdings of iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (TSE:CDZ) include Aecon Group Inc. (ARE.TO), Fiera Capital Corporation (NYSE:FRRPF), Great-West Lifeco Inc. (NYSE:GWLIF) and Enbridge Inc. (NYSE:ENB)
Canadian energy company Enbridge Inc. (NYSE:ENB) is one of notable dividend stocks popular among elite hedge funds. Insider Monkey’s database shows that 21 hedge funds had stakes in Enbridge Inc. (NYSE:ENB) as of the end of the fourth quarter of 2022. The biggest stakeholder of Enbridge Inc. (NYSE:ENB) was Rajiv Jain’s GQG Partners which owns a $2.5 billion stake in the company.
3. Vanguard High Dividend Yield Index Fund (NYSE:VYM)
Vanguard High Dividend Yield Index Fund (VYM) tracks the performance of FTSE® High Dividend Yield Index. Vanguard High Dividend Yield Index Fund (VYM)’s portfolio consists of some of the most notable high dividend stocks, including The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), Chevron Corporation (NYSE:CVX) and The Home Depot, Inc. (NYSE:HD). The biggest holding of Vanguard High Dividend Yield Index Fund (VYM) is Exxon Mobil Corporation (NYSE:XOM). These companies have a remarkable track record of dividend increases and provide a lot of certainty.
As of the end of the fourth quarter of 2022, 79 hedge funds tracked by Insider Monkey were bullish on Exxon Mobil Corporation (NYSE:XOM). The biggest hedge fund stakeholder of Exxon Mobil Corporation (NYSE:XOM) was Rajiv Jain’s GQG Partners which owns a $3.6 billion stake in the company. The second biggest hedge fund stakeholder of Exxon Mobil Corporation (NYSE:XOM) is Jean-Marie Eveillard’s First Eagle Investment Management which owns a $1.5 billion stake in the company.
2. Schwab U.S. Dividend Equity ETF (NYSE:SCHD)
Schwab U.S. Dividend Equity ETF (NYSE:SCHD)’s goal is to track the total return of the Dow Jones U.S. Dividend 100™ Index.
Schwab U.S. Dividend Equity ETF (NYSE:SCHD) focuses on high-quality stocks with sustainable divided payouts. Since its inception Schwab U.S. Dividend Equity ETF (NYSE:SCHD) has posted over 13% in annualized returns. Schwab U.S. Dividend Equity ETF (NYSE:SCHD)’s top holdings include AbbVie Inc. (NYSE:ABBV), PepsiCo, Inc. (NYSE:PEP), The Coca-Cola Company (NYSE:KO) and Verizon Communications Inc. (NYSE:VZ).
Among these top holdings, The Coca-Cola Company (NYSE:KO) is one of the most popular dividend stocks among the elite hedge funds tracked by Insider Monkey. As of the end of the fourth quarter of 2022, 58 hedge funds had stakes in The Coca-Cola Company (NYSE:KO). The biggest hedge fund stakeholder of The Coca-Cola Company (NYSE:KO) is Warren Buffett’s Berkshire Hathaway which owns a $25.4 billion stake in the company.
1. SPDR S&P Dividend ETF (NYSE:SDY)
SPDR S&P Dividend ETF (NYSE:SDY) is another ETF in our list that seeks to track the performance of S&P® High Yield Dividend AristocratsTM Index. The biggest holdings of SPDR S&P Dividend ETF (NYSE:SDY) include Walgreens Boots Alliance, Inc. (NASDAQ:WBA), 3M Company (NYSE:MMM) and National Retail Properties, Inc. (NYSE:NNN).
With over four deacdes of consistent dividend increases, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is one of the most notable dividend stocks that is also highly popular among the elite hedge funds tracked by Insider Monkey. As of the end of 2022, 42 hedge funds tracked by Insider Monkey had stakes in the company. The most significant hedge fund stakeholder of the company was Paul Marshall and Ian Wace’s Marshall Wace LLP which owns a $77 million stake in the company.
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