Dividend Lovers Examine ETFs as PepsiCo Raises Payout
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Dividend stocks are in focus after PepsiCo, Inc. (NYSE: PEP) is the latest bluechip to raise its dividend. The beverage and snack food giant boosted its quarter payout 4.4% to $0.5375 per share, or $2.15 annualized. This gives it a yield of 3.2%.
PespiCo is a big holding in dividend ETFs like Vanguard Dividend Appreciation ETF (NYSE: VIG) and Schwab U.S. Dividend Equity ETF (NYSE: SCHD). In addition to VIG and SCHD, the most popular dividend ETF by volume is iShares Dow Jones Select Dividend Index (NYSE: DVY), although PepsiCo is not a 10 ten holding there.
On the whole, cash dividend payments should rise to a record high in 2012, according to Howard Silverblatt, S&P's senior index analyst. Data compiled by Silverblatt estimated payouts for 2012 will be $279 billion, $31 billion more than the previous record of $248 set in 2008.
Dividend ETFs have become popular recently, partially because there is general interest in dividend paying stocks, but the ETFs are also valued because they simplify the process for investors by collecting and paying dividends in an organized way.
PespiCo is a big holding in dividend ETFs like Vanguard Dividend Appreciation ETF (NYSE: VIG) and Schwab U.S. Dividend Equity ETF (NYSE: SCHD). In addition to VIG and SCHD, the most popular dividend ETF by volume is iShares Dow Jones Select Dividend Index (NYSE: DVY), although PepsiCo is not a 10 ten holding there.
On the whole, cash dividend payments should rise to a record high in 2012, according to Howard Silverblatt, S&P's senior index analyst. Data compiled by Silverblatt estimated payouts for 2012 will be $279 billion, $31 billion more than the previous record of $248 set in 2008.
Dividend ETFs have become popular recently, partially because there is general interest in dividend paying stocks, but the ETFs are also valued because they simplify the process for investors by collecting and paying dividends in an organized way.
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