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Dividend ETFs to Consider After Johnson & Johnson Hike

Posted
4/28/2011 11:08:00 AM
By: ETF Trends
Referenced Stocks:JNJ

Johnson & Johnson ( JNJ ) on Thursday was the latest corporate giant to reward shareholders with a dividend hike as more companies return cash by boosting their payouts or buying back shares.

Johnson & Johnson said its board has declared a 5.6% increase in the quarterly dividend rate.

"Given our strong financial position, confidence in the future of Johnson & Johnson, and in recognition of our results in 2010, the Board has voted to increase the dividend for the 49th consecutive year," said William C. Weldon, chief executive.

There are many exchange traded funds (ETFs) that focus on companies that pay high dividends. For example, Johnson & Johnson is the third-largest holding in iShares High Dividend Equity Fund (NYSEArca: HDV) at 6.4% of the portfolio.

Vanguard Dividend Appreciation ETF (NYSEArca: VIG) saw year-to-date net inflows of nearly $1 billion through March, according to data from National Stock Exchange.

Other large dividend ETFs include iShares Dow Jones Select Dividend (NYSEArca: DVY), SPDR S&P Dividend ETF (NYSEArca: SDY) and WisdomTree LargeCap Dividend (NYSEArca: DLN).