Dividends on common stocks are not set in stone. Companies can
reduce or take away shareholder dividends at their
For this reason, owning a basket of income stocks through an
exchange traded fund or ETF makes sense.The WisdomTree SmallCap
Dividend Fund (
) andMidCap Dividend Fund (
) offer above-market yields and a greater chance of getting a
WisdomTree's SmallCap Dividend Fund tracks the performance of
the company's SmallCap Dividend Index. Investment research firm
Morningstar gives the ETF four stars out of five.
Unlike most companies or other
, the WisdomTree SmallCap fund pays dividends on a monthly basis.
It switched to monthly payouts in November.
The ETF has a yield of about 3% vs. around 2.5% for the
R.R. Donnelley (
),Vector Group (
) andTal International (
) are its biggest holdings.
WisdomTree's MidCap Dividend Fund tracks the company's MidCap
Dividend Index. This ETF is also rated four out of five stars by
It pays dividends on a monthly basis, too. It has a yield of
Windstream (WIN),Ameren (AEE) andPitney Bowes (PBI) are its
top three holdings.
Both ETFs will dole out their next distributions March 28 to
shareholders of record on March 26.
While most ETFs use market cap for their weightings,
WisdomTree doesn't. Its dividend-focused funds are weighted by
the annual dollar amount of dividends (dividend per share times
number of shares outstanding) that a company is expected to pay
for the year relative to the projected dividend stream from all