If you’re not sure about which dividend shares to buy, you could consider ETFs.
ETFs provide investors with exposure to a number of shares with just a single investment.
Three ETFs that I think would be good options for income investors are listed below. Here’s why I like them:
VanEck Vectors Australian Banks ETF (ASX: MVB)
Given all the drama in the banking sector this month, it can be hard to decide which bank to buy over the others. In light of this, I think the VanEck Vectors Australian Banks ETF could be a good way for income investors to buy into the sector. It provides investors with a slide of the big four banks, the regionals, and Macquarie Group Ltd (ASX: MQG). Its units currently provide a 5.5% dividend yield.
Vanguard Australian Shares Index ETF (ASX: VAS)
Another option for investors to consider is Vanguard Australian Shares Index ETF. This ETF gives investors exposure to a massive 300 shares that are listed on the S&P/ASX 300 index. Whilst not all of these shares actually pay dividends, collectively they offer investors an average dividend yield of approximately 4.1%. As with the VanEck Vectors Australian Banks ETF, the big four banks are included in this ETF along with dividend favourites such as Sydney Airport Holdings Pty Ltd (ASX: SYD) and Transurban Group (ASX: TCL).
Vanguard Australian Shares High Yield ETF (ASX: VHY)
A final option to consider is the Vanguard Australian Shares High Yield ETF. As its name implies, this ETF is focused on Australian shares that offer above-average dividend yields. These are a diverse group of shares such as mining giant BHP Group Ltd (ASX: BHP) and telco company Telstra Corporation Ltd (ASX: TLS). At present the ETF offers income investors an estimated forward 5.4% dividend yield.
The post 3 ASX ETFs that can solve your income needs appeared first on Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited, Sydney Airport Holdings Limited, Telstra Limited, and Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019