If I Could Invest $1,000 in Just 1 Dividend Stock for the Next 5 Years, I’d Pick This Clear Standout Over the Vanguard S&P 500 ETF (VOO)
One popular and successful investing strategy has been to put money into low-cost exchange-traded funds (ETFs) that track the major market indexes. One of the largest such funds is the Vanguard S&P 500 ETF (NYSEMKT: VOO).
However, right now, the S&P 500 index has a 1% dividend yield. For investors looking primarily for income-focused investments, there are better alternatives.
Target (NYSE: TGT) provides both reliable dividends and strong opportunities for share price appreciation. The stock has a 3% yield and upside potential. If I had $1,000 that I was ready to put into the market right now, here’s why I would buy Target’s shares rather than the Vanguard S&P 500 ETF.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.