If you're not sure about which dividend shares to buy, you could consider ETFs.
ETFs provide investors with exposure to a number of shares with just a single investment.
Three ETFs that I think would be good options for income investors are listed below. Here's why I like them:
VanEck Vectors Australian Banks ETF (ASX: MVB)
Given all the drama in the banking sector this month, it can be hard to decide which bank to buy over the others. In light of this, I think the VanEck Vectors Australian Banks ETF could be a good way for income investors to buy into the sector. It provides investors with a slice of the big four banks, the regionals, and Macquarie Group Ltd (ASX: MQG). Its units currently provide a 5.5% dividend yield.
Vanguard Australian Shares Index ETF (ASX: VAS)
Another option for investors to consider is Vanguard Australian Shares Index ETF. This ETF gives investors exposure to a massive 300 shares that are listed on the S&P/ASX 300 index. Whilst not all of these shares actually pay dividends, collectively they offer investors an average dividend yield of approximately 4.1%. As with the VanEck Vectors Australian Banks ETF, the big four banks are included in this ETF along with dividend favourites such as Sydney Airport Holdings Pty Ltd (ASX: SYD) and Transurban Group (ASX: TCL).
Vanguard Australian Shares High Yield ETF (ASX: VHY)
A final option to consider is the Vanguard Australian Shares High Yield ETF. As its name implies, this ETF is focused on Australian shares that offer above-average dividend yields. These are a diverse group of shares such as mining giant BHP Group Ltd (ASX: BHP) and telco company Telstra Corporation Ltd (ASX: TLS). At present the ETF offers income investors an estimated forward 5.4% dividend yield.
