Dividend stocks can be a good choice for a few situations and investment strategies.
If you’re feeling nervous about high valuations of tech stocks, want to diversify into other parts of the market after recent run-ups in share prices, or want to earn more income from your stocks, buying dividend ETFs can quickly put more dividend-paying companies in your portfolio
Two popular Vanguard ETFs offer a broad range of high-yield dividend stocks. One fund, the Vanguard High Dividend Yield ETF (NYSEMKT: VYM), is focused on U.S. stocks, while the other ETF, the Vanguard International High Dividend Yield ETF (NASDAQ: VYMI), focuses on international stocks. For the past five years, the international fund has outperformed the U.S. fund, but both have underperformed the S&P 500 index.
If your goal is to beat the market, these dividend ETFs might not be the right choice. But if you want steady dividends from reliable, consistently profitable companies, each of these two dividend stock funds is worth a look. Here are more details on which of these Vanguard ETFs could be a better buy.