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Camari Ellis
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Camari Ellis is an portfolio manager who manages an ETF only portfolio. The use of macro economic, technical and fundamental analysis tools provide great clarity for researching investment opportunities for his clients. Camari holds a BA degree in finance from Temple University and resides in... More
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StoneRidge Investments Partners
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  • 10 Highest Dividend Yielding ETPs

    The November 29th issue of Barron’s featured a special on retirement income. As more and more baby boomers cross over the retirement threshold, the topic of income generating investments becomes more popular. When doing a Google search for “Retirement Income”, it produces almost 4 million results. Clearly, there is a plenty of information about retirement income, but here is another view to add to that list.


     

    On November 29th, the 10yr Treasury yield was 2.79%, so if an investor were to invest $100,000 in 10yr Treasury bonds the most income a retiree could expect is $2,790 annually. Currently, the Fed is more concerned with deflation then inflation. Unfortunately the Fed is only concerned about core inflation, which is CPI (inflation) minus food and energy prices. Historically, food and energy prices experience temporary price shocks, and these shocks can give a misleading impression of the overall direction of inflation. However, in today's environment, food prices are up drastically, with the expectation of further price appreciation, investors should look for opportunities to increase their purchasing power. So, I compiled a list of the 10 highest Dividend Yielding ETPs (Exchange Traded Products).

    10 Highest Dividend Yielding ETPs

    TickerNameGeographic Focus (Holdings Based)Industry Focus (Holdings Based)Inception DateTot Ret 1DTot Ret YtdTot Ret 1YDiv 12M Yld GrossBeta Avg Volume 30 Day
    REMISHARES FTSE NAREIT MORTGAGEUSMortgage/Reits5/4/20070.27%9.43%13.96%10.41%1.0551,546.00
    JNKSPDR BARCLAYS CAPITAL HIGHUSHigh Yield Corp Bonds11/28/20070.53%11.43%15.94%9.71%0.562,570,689.00
    DRWWISDOMTREE INTL REAL ES FDAsia PacificIntern'l REITs/Real Estate6/5/20070.53%9.60%12.14%9.15%0.9944,614.00
    HYGISHARES IBOXX H/Y CORP BONDUSHigh Yield Corp Bonds4/11/20070.26%8.61%12.98%8.46%0.58966,845.00
    PHBPOWERSHARES FNDMTL H/Y CORPUSHigh Yield Corp Bonds11/15/20070.22%7.99%12.14%7.91%0.6374,314.00
    IFGLISHARES FTSE EPRA/NAREIT DEVInternationalIntern'l REITs/Real Estate11/16/20070.10%8.85%11.51%7.47%148,466.00
    PFFISHARES S&P PREF STK INDX FNUSPreferred Stock3/30/2007-0.31%13.62%20.98%7.32%0.851,306,296.00
    PGFPOWERSHARES FIN PFD PORTFOLIGlobalPreferred Stock12/1/2006-0.89%15.76%23.95%7.23%0.94592,615.00
    PGXPOWERSHARES PREFERRED PORTUnited StatesPreferred Stock1/31/2008-0.07%12.04%16.66%6.99%0.84561,229.00
    GCECLAYMORE CEF GS CONNECT ETNN.A.High Div Closed End Funds12/10/2007-0.59%10.67%14.24%6.75%0.81,571.00
    Source: Bloomberg as of 11/29/10



    After reviewing the list, a few themes are clear. Most prevalent are high yield bonds which invests in bonds that are below investment grade, preferred stock which are equity securities that have properties of an equity and a bond, and real estate which consists of REITS and mortgage companies. The ETPs list has both US and international exposure.


    ---Returns


     

    Surprisingly, all of these ETPs have higher year to date (ytd) returns then the S&P 500 which has increased by 6.52% YTD. The average return for the top 10 is 10.8%, which is 4.28% above the index. The 12 month dividend yield for the S&P 500 is approximately 1.8%.Conversely, the average 12month dividend yield for the top 10 is 8.14%, which is 6.34% above the index.


    ---Beta


     

    Beta is a number describing the relationship of its returns with that of the Market (S&P 500) as a whole. A beta of 1 means the security will move lock step with the market, and a security with a beta of less then one means the security is less volatile then the market. A negative beta means the security moves in the opposite direction of market. On average these top 10 have a beta of .82, which means it is 18% less volatile then the overall market.


     

    In retrospect, an investor could have created an equal weight portfolio of the Top 10 dividend ETPs and would have received an 8.14% dividend yield, along with a return of 10.8% before taxes and commissions, plus the volatility the portfolio experienced should have been reduced by 18% in comparison with the overall market.



    Disclosure: No Postions
    Dec 02 2:07 PM | Link | 1 Comment
  • The $2.8 Billion UnderWater African Forest


    Green Shoots continue to emerge from the African continent, once again disproving many skeptics that feel that African geopolitical issues are to convoluted for entrepreneurial development. Today plans were announced to start an underwater logging project on Lake Volta, in Ghana, estimated to be valued over $2.8 billion. Two Canada companies are partnering on this lucrative venture, Clark Sustainable Resource Development(CSRD) and Triton logging. CSRD has partnered with the Ghanaian government for cite control and Triton logging is an expert in underwater logging expeditions. The project consists of 350,000 hectares (864,500 US Acres) of area. Volta Lake was originally created as a result of the construction of the Akosombo Dam in 1964.



    The project is estimated to generate $100 million in Foreign Direct Investment(NYSE:FDI) over the next four years in Ghana. Clearing of the underwater lumber will reap boundless benefits for the local economy. According, to an employment study produced by CSRD, this development is expected to employ approximately 400 people and have a employment multiplier effect of 3.5, thus creating upwards of 1400 jobs in the region and creating broader tax base to support infrastructure projects for the country. Regional prospects of entrepreneurial development are more favorable once the underwater forest is cleared and lake transportation established, which has been quite hazardous since the dam's construction, due to shallow waters and unseen deeply rooted trees within the lake.


    Once operational, Volta Lake has a potential to produce $100 million in FDI annually. Projects like these and many others in the incubation stage continue to prove “The Investment Case For Africa”(See the Dark Continent Shining Star” Sept. 2008). This region is overlooked far to often for investments, due to much of the political strife abound on the continent. Many companies listed on the Ghana Stock Exchange(NYSE:GSE), which is down -39.86 YTD will be able to participate in this project directly or indirectly. Also Van Eck's Market Vectors division has an Exchanged Traded Fund(NYSEMKT:ETF) AFK, that covers African continent and has exposure to Ghana which has returned 35.6% YTD. Ghana is just one of many countries in Africa and Frontier Markets alike that present a unique opportunity for ground floor investments.


    Disclosure: No Positions Owned

    Sep 29 11:56 PM | Link | Comment!
  • The King of Pop Lives Forever!!!

    The unexpected passing of “Pop Star King” Michael Jackson has taken the world by surprise. Many sad and teary eyed individuals will mourn this Bad, Smooth Criminal, who began dancing and singing his way into to the hearts of the entire world, at a tender age of 11 years old.


     

    Sadly, death seems to propel mega star earnings many years after their demise. The likes of Elvis Presley, Tupac Shakur, and John Lennon have continued to see their estates grow in size as the years progress forward. Reaching from their graves, many of these pop icons are able to leverage their image, voice and the rights to their collective body of work via sampling, marketing and advertisement campaigns.


     

    Michael Jackson will not be the exception! I predict that Michael Jackson's estate will become the highest earning of all time. There will be many industries and companies that will see an immediate impact to their bottom lines. The entertainment and retailing industries stand to benefit the most from this tragic event.


     

    From ABC to Thriller to Beat It, fans worldwide have a deep rooted connection with this mega star and his collection of timeless hits. The company that is best positioned to profit from this is Apple. An immediate up tick in revenue should materialize due to nostalgic fans purchasing these classics.


     

    The iPod and iPhone, coupled with iTunes store has established a dominat position as the one stop shop for media on the Internet. Songs, complete albums, music videos and movies can be purchased via the iTunes store. The entire globe will have access to purchase this star's work at the click of a button. Ironically, Apple has produced a string of successful product marvels and as a result has seen a YTD stock increase of approximately 54%. An increase in the company's stock price will prove to be an unintended consequence of this tramatic event...


    Disclosure:No Positions Owned

    Jun 25 11:38 PM | Link | Comment!
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