Looking for Income? Consider Dividend ETFs

Dividend exchange traded funds (ETFs) may have taken a hit and put off investors during the downturn. But dividends are still a safe and stable way to earn a little extra money. Higher yields do look tempting but they come with higher risks, which a lot of people learned when booms turn to busts. So, be wary if an security offers anything that is two-and-a-half times the broader market average, or currently around 5% or more.

The top two yielding dividend ETFs are PowerShares KBW High Dividend Yield Financial (NYSEArca: KBWD), which gives an 8.7% yield thanks to its exposure to the financial sector and WisdomTree Trust SmallCap Dividend (NYSEArca: DES), which yields 4.4%. It also has a high level of exposure to financials, which account for nearly 50% of the fund. Industrials, consumer staples and utilities also play a part.

Source: ETF Trends

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