This is the Way to Dividends: ETFs That Pay Like a Beskar Bounty

Turbulent Times? Dividends Are a Mandalorian's Best Friend

The market's been jumpier than a Jawa on a power converter lately. One minute it's up the next it's dodging Imperial cruisers. Smart investors like yours truly know that during these times you need something reliable. Something...with dividends. These dividend paying Exchange Traded Funds (ETFs) are a solid choice. 'This is the way,' as the Armorer says. Even Morningstar seems to think so.

The Morningstar Council Speaks: Gold and Silver for These ETFs

Ryan Jackson some Senior Analyst at Morningstar which I am told is a big deal in some sectors says these ETFs 'stay competitive during rallies but hold up better during drawdowns.' Sounds like Beskar armor for your credits to me. They've even got 'medalist ratings' of gold or silver. Shiny like a freshly forged helmet. I wonder if they can stop a blaster shot? Probably not but they can protect your credits which is almost as good.

Dividend Income vs. Dividend Growth: Which Path to Take?

So you got your dividend income funds and your dividend growth funds. Jackson says the income funds can be a bit riskier like trusting a Weequay with your ship's hyperdrive. The growth funds? Those are the businesses that keep on ticking like a well oiled Razor Crest. Both have quality components which is good. You don't want your dividends coming from some backwater operation run by pirates unless they accept credits and can give a better ROI than my current investments.

Vanguard Dividend Appreciation ETF: The Patient Hunter

First up the Vanguard Dividend Appreciation ETF. This one tracks dividend growers that have been increasing their payouts for at least 10 years. Patient like a Mandalorian waiting for his prey. A yield of 1.73% and an expense ratio of 0.05%. Down a bit this year but remember slow and steady wins the race. 'I can bring you in warm or I can bring you in cold,' as I like to say. Either way you're getting dividends.

Fidelity High Dividend ETF: Value for Your Credits

Next the Fidelity High Dividend ETF. Rated silver five stars. A 3.22% yield with a 0.16% expense ratio. Jackson says it's 'value oriented,' like finding a pristine blaster rifle at a scrap yard. It focuses on yield but also checks for payout ratio and dividend growth. Smart. You don't want to invest in a sinking ship... unless there's a bounty on board.

Schwab US Dividend Equity ETF: A Balanced Approach

The Schwab US Dividend Equity ETF. Gold medalist four stars. A 3.94% yield and a 0.06% expense ratio. Jackson calls it 'an excellent fund' that balances yield and quality. They check for free cash flow to debt ratio dividend growth and return on equity. Sounds like a thorough Mandalorian tracker to me. Down 5% this year. That's the cost of doing business.