Personal Finance

Understanding dividend paying ETFs

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  • Feb 15th, 2015 9:44 pm
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Jr. Member
Jul 16, 2013
118 posts
2 upvotes

Understanding dividend paying ETFs

Right now, I have a ton of shares in a single company that pays quarterly dividends. I know this is not the best of all situations because it lacks diversity but my annual dividend from just this one holding is 1/3 of my annual salary.

What I was wondering was are there ETFs that behave similarly to shares that pay a quarterly dividend around 4% and have decent growth? If there were, I'd like to be able to withdraw the quarterly dividend and allow just the principle to grow.

Thank you
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Deal Fanatic
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Jan 27, 2007
5116 posts
984 upvotes
T.
ETFs in general have a periodic distribution, could be monthly/quarterly/semi annual/annual.

The distribution is usually made up of not only dividends, but also interest, capital gains, other income and return of capital.
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