Are ETFs good for dividends?

Dividend-focused ETFs can be a convenient way to own a diversified basket of dividend-paying stocks. They may reduce single-company dividend risk compared with holding just a few high-yield stocks.

Not all dividend ETFs are the same. Some focus on high yield, others on dividend growth, and some screen for quality metrics. The underlying method can change the risk profile a lot.

If you're using dividend ETFs for income, look past the headline yield. Check the fund's sector concentration, payout consistency, and whether the strategy is chasing yield in riskier corners of the market.