| A growing number of investors are seeking to | | | | holds the stocks in the Value Line Dividend Index. |
| maximize their investment income rather than | | | | This index consists of companies that Value Line |
| capital gains. | | | | gives a SafetyTM Ranking of #1 or #2 using the |
| There're many reasons for this: the tech stock | | | | Value Line SafetyTM Ranking System, which pay |
| bust of 2001, the accounting scandals, the recent | | | | higher than average dividends and which have a |
| stock market collapse following the subprime | | | | market of at least $1 billion. |
| mortgage scandal, and the desire of aging baby | | | | SPDR Dividend ETF: SDY tracks the S&P High |
| boomers to focus on increasing their current | | | | Yield Dividend Aristocrat Index. The Dividend |
| income rather than increasing future capital gains | | | | Aristocrat Index consists of the top fifty |
| that are proving highly volatile. | | | | companies in the S&P Composite 1500 which |
| Such investors can buy individual stocks that pay | | | | have had annual dividend increases for at least |
| dividends, but unless they have a lot of money to | | | | the past twenty-five years. |
| invest they cannot benefit from the safety net | | | | The WisdomTree Total Dividend Fund: DTD |
| of broad diversification. People who buy index | | | | consists of all the dividend paying companies in |
| mutual funds or exchange traded funds get | | | | the U.S. stock market. |
| diversification, but low dividend income. The S&P | | | | The WisdomTree High Yielding Equity Fund DHS |
| 500 index contains many companies that pay | | | | tracks the WisdomTree High Yielding Equity Index. |
| dividends, but also many that don't. | | | | These are the companies in the WisdomTree |
| Fortunately, small income investors seeking | | | | Dividend Equity Index with the highest dividend |
| convenience and diversification can choose from a | | | | yields. |
| number of exchange traded funds (ETFs). | | | | The WisdomTree Dividend ex-Financial Fund DTN |
| The first ETF to focus solely on U.S. stocks that | | | | tracks the performance of the WisdomTree |
| pay dividends is iShares Dow Jones Select | | | | Dividend Top 100 Index excluding financial |
| Dividend Index Fund: DVY. It is based on the Dow | | | | companies. |
| Jones selection of the best U.S. stocks that pay | | | | This ETF used to track all the top 100 dividend |
| dividends. | | | | paying stocks. Obviously, WisdomTree |
| The PowerShares Dividend Achievers Portfolio: | | | | restructured the fund after the financial crisis in |
| PFM tracks the Mergent Broad Dividend Achievers | | | | the fall of 2008. |
| Index. This is a list of all U.S. companies that have | | | | PEY, DHS and SDY focus on the dividend stocks |
| raised their dividends every year for at least the | | | | with the highest yields. PFM and FVD focus on the |
| last ten years. (Some have raised their dividends | | | | companies with the longest track records of |
| every year for over one hundred years.) | | | | increasing dividends. DTN and DVY focus on |
| Therefore PFM consists of all U.S. companies with | | | | quality of the companies. DTD is the broadest, |
| a strong track record of raising dividends. | | | | including all U.S. stocks that pay dividends. |
| The PowerShares High Yield Equity Dividend | | | | Investors seeking dividend income have a lot of |
| Achievers Portfolio: PEY holds the fifty companies | | | | good choices. They can receive an immediate |
| on the Mergent Dividend Achievers index now | | | | return on investment whether the market goes |
| paying the highest dividends. | | | | up, down or sideways. |
| First True Value Line Dividend Index Fund: FVD | | | | |