Let’s address the elephant in the room: October makes you want to hide your portfolio under the bed, doesn’t it? The ghosts of 1929 and 1987 still haunt this month. But here’s the dirty secret-staying out of the market feels safer until you realize inflation’s quietly eating your cash like a raccoon in a trash can. Timing the market? Please. I’ve seen more consistency in my ex’s mood swings.
Here’s the play: dividend ETFs. They’re like that friend who still sends a thank-you note after dinner-reliable, slightly old-fashioned, and keeps paying you even when the world’s on fire. Even if the S&P 500 throws a tantrum, these bad boys might keep your cash register dinging.
Why dividends? Let’s get mathy (but make it fashion)
Check these numbers from 1973-2024. Dividend growers? 10.24% annual return. S&P 500? 7.65%. Non-payers? 4.31%. Translation: companies that cut dividends deserve your scorn-they’re the financial equivalent of showing up to a job interview in pajamas.
- Dividends compound like gossip. $1/share today becomes $3/share tomorrow. Inflation? Please. This is passive income with a growth spurt.
- Stock prices might dip, but dividends keep coming. It’s like owning a rental property without the midnight plumbing emergencies.
- $400k in 3% yield ETF = $12k/year. Retirees spend it. Savers reinvest it. Both win. (Yes, even you, overworked millennial with avocado toast regrets.)
The ETF trio that’ll make your broker whisper “thank you”
| ETF | Yield | 5-Year Return | 10-Year Return |
|---|---|---|---|
| iShares Preferred and Income Securities ETF (PFF) | 6.46% | 2.57% | 3.64% |
| Schwab U.S. Dividend Equity ETF (SCHD) | 3.79% | 10.51% | 11.55% |
| Vanguard Dividend Appreciation ETF (VIG) | 1.64% | 12.20% | 13.16% |
Notice the pattern? High yield = slower growth. Spread your dollars like you’re at an all-you-can-eat buffet-hungry but trying not to look desperate.
1. PFF: The weird cousin who prefers stability
This ETF holds preferred stocks-those awkward relatives of common shares that don’t appreciate much but throw dividend parties. Think of it as the savings account with a personality.
2. SCHD: The reliable friend
Tracks companies that’ve paid dividends for 10+ years. Current crushes: AbbVie (yes, the Botox people), Lockheed Martin (hello, defense contracts), and Amgen (biotech wizardry).
3. VIG: The overachiever
Cherry-picks companies that’ve raised dividends for a decade. Microsoft? Broadcom? JPMorgan? They’re not just paying-they’re showing off.
So here’s your October survival kit. No guarantees, but if the market tanks, at least your dividends might buy you a better wine while you wait for recovery. 🍷
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2025-10-20 15:42