From the category archives:

High Yield ETFs

Sector Review: Utility ETFs for High Yield and Stability

July 9, 2010

Investors are starting to pay more attention to Utility Stocks and Utility ETFs of late given the low interest rate environment that doesn’t seem to have an end in sight. With the 10-year Treasury hovering around 3% and the prospect of loss of principal one bonds when rates do rise eventually, the prospect of equities [...]

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2 Income ETF Approaches: High Yield vs. Dividend Growth Rate

June 21, 2010

There are two main schools of thought in dividend investing and for whatever reason, investors tend to be polarized into one camp or the other. On one hand, investors tend to be drawn to juicy dividend yields of 8% or more given that this matches the long-term return on equities over long periods of time [...]

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Investors Continue to Pile Into High Yield ETFs – When Does the Music Stop?

April 14, 2010

The risk trade is on. Investors sitting idly by on the sidelines watching everyone else make 70-100% since the March lows are resolved to the fact that risk-free investment returns are going to be negative in terms of even modest inflation for years to come. As such, investors in the income arena are increasingly shifting [...]

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Dividend ETFs to Rally Next?

March 29, 2010

ETFs holding dividend-paying stocks trailed the broad market since the implosion in early 2009 primarily because of the rebound in technology shares which tend to not pay out dividends given the nature of the industry. It’s generally the more mature cycle Industrials, Telecoms, Utilities and Financials that tend to pay dividends over time. However, analysts [...]

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High Yield Junk Bond ETF: Risk/Reward Spectrum Favor Buying?

March 24, 2010

Given the current low interest rate environment and the seemingly unchecked momentum in common equities since last March, investors may want to consider parking some portion of their allocation in high yielding vehicles in the event the market takes a breather. There are some decent ETFs out there that combine high yield, sustained dividend payouts [...]

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Impressive Muni ETF Yields 7.4% Tax-Free and Pays Monthly

March 8, 2010

The high yield muni market in general has been a stellar performer following the trough of the 2009 financial collapse but there are some striations depending on just which municipalities are covered in a particular holding. Many view California as being on the risk of declaring bankruptcy for instance, while much of the midwest remains [...]

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Preferred ETF Delivers High Yield and Rally Simultaneously

January 14, 2010

The iShares S&P U.S. Preferred Stock Index ETF (PFF) has been delivering strong share price appreciation of late while delivering outsized dividend distributions. Over the prior 1 month period, PFF is up 5% compared to a 3% return for the S&P500. If utilizing Financials as a proxy, the ETF XLF is also up 5%, but [...]

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