Deep Dive into Dividends

DIG DEEPER INTO DIVIDENDS

An iShares guide to dividend investing with ETFs

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Investors are increasingly turning to dividend-paying stocks to seek yield and add stability to portfolios.

Exchange traded funds (ETFs) provide access to a wide variety of dividend strategies with the benefits of daily holdings disclosures, low costs and tax efficiency.

iShares ETFs offer the broadest range of dividend funds designed to help investors meet their goals.*

This guide will cover:

? How dividend investing strategies can potentially help investors improve their portfolios.

? Key considerations when selecting between high-dividend and dividend-growth strategies.

? How iShares dividend ETFs offer investors broad exposures with the potential to reduce risk.

* As of 11/29/2019, BlackRock is one of the largest providers of dividend ETFs based on number of dividend ETFs offered which provide exposure to established high-quality companies with a consistent history of dividends.

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CONTENTS

The case for dividend ETFs

4

Learn more about dividend investing with ETFs and how they can play a role in potentially improving portfolios in the long-run.

Differentiating between high-dividend

and dividend-growth strategies

10

Compare how high-dividend and dividend-growth strategies can be used alongside current portfolio holdings to seek improved investment outcomes.

Explore iShares dividend ETFs

15

Investors should consider a broad range of opportunities to generate income. iShares offers a diverse set of solutions to help meet income needs.

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THE CASE FOR DIVIDEND ETFs

Investors have long sought out shares of dividendpaying companies for help meeting a wide variety of investment objectives.

Seek attractive total returns

1

Dividend strategies, including higher-dividendyielding and dividend growth stocks may help to

enhance a key driver of portfolio returns.

Pursue steady income

2

Dividend stocks can provide a regular source of income and help investors meet current

spending needs.

Reduce risk

3

Dividend-oriented funds have offered lower volatility and reduced downside risk relative to

other strategies.

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Dividend investing with ETFs

Dividend ETFs bring together a proven investment strategy with the benefits of ETF investing: low costs, tax efficiency and transparency that includes daily disclosure of holdings.

Total U.S. dividend ETF assets

$200

175

150

Assets (billions)

125

100

75

50

25

0

2009

2010

2011

2012

Source: BlackRock Global Business Intelligence as of 9/30/2019

2013

2014

2015

2016

2017

2018 Sep 2019

Seek attractive total return

Equity investments offer two sources of potential return: dividend income and price appreciation. The compounding effects of dividend income can be powerful drivers of portfolios returns over time. For instance, the reinvested dividends for the S&P 500 has explained almost 50% of total equity market return over the past 30 years.

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