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Dividends or Growth -- Do You Have To Choose?

by John Jagerson 01/29/09

It is possible to search for and pick individual stocks and add them to a diversified list, but it may be easier to just buy an exchange-traded fund (ETF) that trades an index based on dividend paying stocks like the iShares Dow Jones Select Dividend Index fund (DVY).

For traders looking for opportunities to take more risk, a dividend-indexed ETF could be just the ticket by using options on the index to offset risk, speculate and leverage the trend.

In an earlier article, I discussed the similarities between stocks issuing buyback plans to those paying dividends. Click here to learn more about those plans and how to find them.

Watch John's video -- "Do Dividends Provide Value?" -- to learn more.

Click here to comment on this story or video.

John Jagerson is a contributor to LearningMarkets.com. To learn more about him, read his bio here.

This article originally appeared on the Learning Markets Web site.

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