PowerShares High Yld. Dividend Achv(ETF) (AMEX:PEY)
Closed end fund.
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PowerShares High Yield Dividend Achievers ETF (PEY) interests me for a couple of reasons. I am interested in value investing, particularly in the current market. So while I'm willing to take some risks on beaten-down stocks with sound fundamentals, solid prospects for future growth, and rebound potential, I'm much more interested in strong companies with a proven track record who can return value to investors in the form of dividends.
Now consider PEY. It's dividend payout is around 4.6% as of this posting. That is amongst the highest rates in the whole arena of dividend-focused ETFs and mutual funds. It is considerably higher than oft-recommended DVY (@ 4.0%) and SDY (@3.9%). Plus, it pays its dividend monthly rather than quarterly, which is rare amongst the dividend ETFs and offers greater flexibility in terms of an individual investor's cash flow. Want to reinvest in PEY? Want to allocate that cash to another investment? Want to use it for household management? Having the monthly distribution makes it easier no matter what your own interests are.
There are, of course, differences in approach between the various dividend ETFs in terms of what index they are tracking or what strategy they use. Those articles are easily accessible and I would refer you to them to determine the differences between various ETF options. I think PEY's strategy is sound, which is to follow an index of 50 companies with the combination of highest dividend yields and a track record of consistent dividend increases. But my recommendation here is based on two main factors: 1) High yield relative to other dividend ETFs; and 2) Flexibility of its monthly distribution.
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simply watchlist for a personal strat i'm curious about
look at the largest heavy-weight appreciated stocks in the world...the biggest amongst the biggest that have appreciated strongly in past 9-11 years.
More specifically have done decently in keeping its appreciated value in past year and past 5 years.
And with this list you have automatically the most large expensive stocks
These are highly likely to underperform the index the next 5 years as reality of growth expectations will catch up to the them as the world continues to evolve.
The big market caps to short:
UTX, APPL, MMM, ORCL, AMZN, CAT, SU
As the index beats these over time, it will be beaten by a wider margin by dividend ETFs
Dividend ETFs to buy (to offset the shorts):
VYM, DLN, FVD, DTN, SDY, FDL, PEY
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Monthly dividend is great. Above average yield too. Once the financial situation is corrected this ETF is going to be great. Buy now!
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Financials that survive should start to recover before other industries.
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purchased this when it was first offered. hasn't impressed me with its growth potential, despite its dividend. much prefer DVY.
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great ETF nice monthly dividen payout
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monthlet divedend payer...Yield (ttm)²: 3.02%
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Overall Average: 96% - Buy
Price 16.43
Support 16.32
Pivot Point 16.41
Resistance 16.50
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Dividend-Paying & Value are longtime Motley Fool stalwarts. If I had to pick one ETF and stick with it, it's this one.
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