Dividend stocks are not traditionally known for their share price rallies. Companies making distributions to stockholders tend to be stable and well-established, with their biggest growth days long in the past. Similarly, exchange-traded funds (ETFs) that hold baskets of dividend stocks tend to provide investors with a healthy passive income stream simply for owning shares rather than capital appreciation.
Occasionally, though, investors can find the best of both worlds.
Vanguard FTSE Developed Markets ETF (NYSEARCA: VEA), iShares MSCI EAFE ETF (NYSEARCA: EFA), and SPDR S&P 500 Value ETF (NYSEARCA: SPYV) are three ETFs that pay noteworthy dividends and deliver notable capital appreciation. While not the highest of any ETF making distributions, the dividends are still enough to provide a compelling perk for shareholders—especially considering these ETFs are trading at or near year-to-date (YTD) highs after experiencing sizable rallies.
