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ETF Spotlight on PowerShares High Yield Dividend Achievers (NYSEARCA:PEY), part of a weekly series.

Assets: $120.2 million

Objective: Tracks the Dividend Achiever 50 Index

Holdings: Top holdings include Century Tel (NYSE:CTL), Altria (NYSE:MO), AT&T (NYSE:T) and Eli Lilly (NYSE:LLY)

What You Should Know

  • Dividend Achievers are a unique class of dividend-paying corporations; to be designated as one, a company has to increase dividend payments for at least 10 consecutive years
  • PEY has 50 holdings
  • The sector breakdown is financials (31.6%), utilities (31.3%), consumer staples (9.1%) and industrials (7%)
  • Currently has a 30-day yield of 4%
  • PEY has an expense ratio of 0.5%

The Latest News

  • In the improving economic climate, more companies are raising their dividend payouts
  • In the last week, 22 companies announced that they’d be increasing their dividend payments
  • With paltry yields elsewhere and record-low interest rates, investors are on the hunt for yield; these ETFs are one place where they can be found lurking
  • Dividend Achievers are a good option for investors because they’ve demonstrated consistency

Disclosure: None

Source: ETF Spotlight: PowerShares High Yield Dividend Achievers (PEY)