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4 High-Yield Dividend ETFs to Buy to Generate Passive Income
The Motley Fool· 2025-10-28 01:13
Core Insights - The article discusses various ETFs that provide opportunities for generating passive income through high dividend yields and minimal management requirements [1] Group 1: Schwab U.S. Dividend Equity ETF (SCHD) - Schwab U.S. Dividend Equity ETF tracks the Dow Jones U.S. Dividend 100 Index, focusing on high-yielding dividend stocks with quality characteristics [3][4] - The ETF has an average yield of 3.8% and has increased its income payments by over 500% since its inception in 2011, with a low expense ratio of 0.06% [4][5] - The fund's top holding has a 4.4% weighting, emphasizing high-quality dividend stocks [4] Group 2: Pacer Global Cash Cows Dividend ETF (GCOW) - Pacer Global Cash Cows Dividend ETF targets companies with high free-cash-flow yields and high dividend yields, with an average free-cash-flow yield of 6.2% and a dividend yield of 4.7% [6][8] - The fund's income yield to investors is approximately 4%, with a higher expense ratio of 0.6% compared to passively managed funds [8] Group 3: SPDR Portfolio S&P 500 High Dividend ETF (SPYD) - SPDR Portfolio S&P 500 High Dividend ETF tracks the S&P 500 High Dividend Index, selecting 80 high-yielding companies with an average dividend yield of 4.5% [9][10] - The fund has a low expense ratio of 0.07% but has seen less than 50% growth in payments since its inception in 2015, focusing primarily on high income yield [10] Group 4: Vanguard Real Estate ETF (VNQ) - Vanguard Real Estate ETF invests in companies that own commercial real estate, primarily real estate investment trusts (REITs), which must distribute 90% of taxable income as dividends [11][12] - The fund has a current yield of 3.6% and charges a reasonable expense ratio of 0.13%, providing broad exposure to the REIT sector [13] Group 5: Summary of ETF Characteristics - Each ETF offers unique advantages: SCHD balances yield and growth, GCOW prioritizes income and capital gains, SPYD maximizes dividend yield with slower growth, and VNQ targets the real estate sector [14]
GCOW ETF: A Flawed Free Cash Flow Strategy In A High-Fee Wrapper (BATS:GCOW)
Seeking Alpha· 2025-10-22 09:09
Core Insights - Investing in the global market with a dividend strategy can be effective when combined with the right screening approach [1] Group 1: Investment Strategy - The Pacer Global Cash Cows Dividend ETF is highlighted as a potential investment vehicle for those interested in dividend strategies [1] Group 2: Analyst Background - The article is authored by a finance professional with a Master's in Banking & Finance, specializing in corporate finance, M&A, and investment analysis [1]