Healthcare companies engage in a wide variety of activities, which focus on maintaining and improving individual health. These activities include pharmaceuticals, development of medical instruments and supplies, long-term care and other activities. Dividend yields in this sector can vary widely, however, they are roughly in line with the wider market average.
If you’re looking to invest in dividend-paying healthcare stocks, you may also be interested in dividend-paying healthcare exchange-traded funds (ETFs). These funds offer a diversified dividend payment based on a basket of financial stock holdings. ETFs trade on stock exchanges, similar to equities and they’re also similar to mutual funds in that they hold securities of many companies.
3 Reasons to Invest in dividend-paying Healthcare ETFs:
- Instead of putting all your eggs in one basket, you get a diversified dividend payment based on a basket of healthcare stocks.
- All ETFs have very low fees and can be traded just like stocks.
- It’s easy to gain exposure to many dividend-paying healthcare stocks with just one vehicle (ETF).
News Source: http://www.dividend.com/dividend-stocks/healthcare