Learn Why Beanstox Plus Portfolios Include Dividend Growth ETFs

You may notice some Wealth Builder portfolios for Beanstox Plus clients are designed to include Dividend Growth ETFs. Take two minutes to learn why they are included and how they can help you reach your investment goals. You can also sign up for Beanstox Plus to get your personalized Wealth Builder portfolio.

History of strong performance and dividend income growth

Dividend Growth ETFs, as represented by WisdomTree U.S. Quality Dividend Growth Fund (DGRW), have historically provided strong returns, with an annualized 10-year return of over 13% as of 7/31/2024¹. Over the past 3, 5, and 10 years, DGRW has delivered average annual returns of 11.3%, 14.3%, and 13.1%, respectively. Hypothetically, if you invested $10,000 in DGRW ten years ago, your investment would have grown to approximately $34,000, and your annual dividend income would have grown to over $430 as of 7/31/2024. That is about 7% annual income growth which can help keep ahead of inflation.

Dividends: Defend against downturns?

During market downturns over the past decade, Dividend Growth ETFs declined 6% less compared to the broader market. This is partly explained by the quality of companies capable of paying and growing dividends over time. These ETFs typically include well-established companies with strong balance sheets, consistent earnings growth, and a solid history of increasing dividends. This combination of growth and risk management makes them a strong choice for long-term investors

Here are 3 reasons investors should want Dividend Growth ETFs in their portfolios:

  1. Income: Dividend Growth ETFs typically provide a reliable stream of income, often outpacing inflation, which is essential for long-term financial stability.

  2. Resilience: Dividend-paying companies tend to be more resilient during economic downturns, offering portfolio protection when the market is volatile.

  3. Invest in Quality: DGRW includes companies with a history of increasing dividends, indicating strong financial health and commitment to returning value to shareholders.

Would you like a Dividend Growth ETF in your portfolio? Nearly all Beanstox Wealth Builder portfolios include Dividend Growth ETFs. Upgrade to Beanstox Plus to get access to your personalized ETF portfolio.

 

Disclosure:
1- Dividend Growth ETFs represented by the WisdomTree U.S. Quality Dividend Growth Index. Performance and data as of 7/31/2024.

 

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Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

A wise man once said, “Simplicity is the ultimate sophistication,” and no one embodies this wisdom better in the financial world than the “Oracle of Omaha,” Warren Buffett. Considered by many as the GOAT, he has built a net worth over $100 billion primarily by investing in a diverse set of companies through his company Berkshire Hathaway.

A wise man once said, “Simplicity is the ultimate sophistication,” and no one embodies this wisdom better in the financial world than the “Oracle of Omaha,” Warren Buffett. Considered by many as the GOAT, he has built a net worth over $100 billion primarily by investing in a diverse set of companies through his company Berkshire Hathaway.

A wise man once said, “Simplicity is the ultimate sophistication,” and no one embodies this wisdom better in the financial world than the “Oracle of Omaha,” Warren Buffett. Considered by many as the GOAT, he has built a net worth over $100 billion primarily by investing in a diverse set of companies through his company Berkshire Hathaway.

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Copyright © 2024 Beanstox. All Rights Reserved

Copyright © 2024 Beanstox. All Rights Reserved