Get Lazy with Dividend Exchange Traded Funds

August 19, 2008

It’s no secret that I believe a concentrated list of well-chosen dividend payers is the best way to secure healthy income and reap nice capital gains over time.

That’s especially true if you follow a long-term buy-and-hold strategy.

Why? Because you’ll pay only small brokerage commissions the few times you buy or sell, and you’ll avoid big tax bills or annual expenses the whole time you’re holding.

If you do your investing inside tax-sheltered accounts like IRAs, the strategy works even better!

However, maybe you’re not a big fan of watching stocks move up and down or making adjustments on a regular basis.

That’s okay.

I’m a big fan of keeping things simple, too. And in the investment world, few things are simpler than exchange traded funds (ETFs).

These vehicles — which function like mutual funds but trade like stocks — are an easy way to get a broad stake in a particular asset class with minimal effort or expense.

In general, ETFs don’t require lots of micromanagement … you can simply “set them and forget them.”

In fact, some investors take this to the extreme by building so-called “lazy portfolios.”

Here’s how it works:

Read the rest of this article and learn which Dividend Superstars portfolio companies made payments in July.

To your dividend investing success,

InvestingInDividends.com

No related posts.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>