Programmer's Investing Notebook         :: Investing notes from a software developer :: | About Me |

I am a big fan of dividend paying stocks. Especially now, when the economy is slowing. Why? Because the interest rate increases will take its toll on the economy, causing it to slow in the coming years. The housing market will also be a drag on the economy. In that scenario, quality stocks will be good to hold. I like stocks that have a record of increasing their dividends year over year.

In the latest issue of Kiplinger's magazine, there are two such dividend-increasing ETFs.

IShares Dow Jones Select Divident Index (DVY)
"It holds 114 of the highest-yielding US stocks (excluding real estate trusts). Dividends must have risen in each of the past five years; no more than 60% of earnings are paid as dividents; and the stock is sufficiently liguid."

SPDR Dividend ETF (SDY)
"Invests in 50 highest-yielding companies in the S&P Composite 1500 that have consistently raised their payouts for at least 25 years."

I like SDY better, I'm looking to make room in my portfolio for it.