Market Currents
The environment seems to favor healthy dividend stocks, and investors are rushing in ($12.6B in...
-
Saturday, August 27, 2011, 8:25 AM ETThe environment seems to favor healthy dividend stocks, and investors are rushing in ($12.6B in inflows to dividend-stock ETFs this year) - but they may be a "little overrated." Beware dividend traps, an average yield that still isn't that high, and shares that will miss out on any big rally. (More ideas in Investing for Income)
Other date
Latest Articles
This news story has 16 comments:
All it ever does is try to kill me with hurricanes, tornadoes, and earthquakes and the occasional plague of frogs. Screw the environment!
Coming to Seeking Alpha to read all these pieces of advice from the experts in the financial industry should convince anyone that the emperor has no clothes, and that the suspicion in many persons' minds that the financial industry is there just to fleece you is more than justified. It is not rocket science. Just go put your money is good big companies, or if you are risk averse, in utilities, and you will definitely do no worse than what these guys suggest.
Clay King recently finished up a multi-article primer series that is a great starting point.
Contrary to popular belief, sometimes issues with the highest yields can offer excellent price-appreciation opportunities because the high yields are an indicator of underpricing, not excessive risk.
As usual very insightful but missing one crucial component: your recommendations.
Thanks
Just for you :-)
More information available at www.etfconnect.com/, but here are some I find worth consideration:
JFP
JPC
ZTR
IGR
AGC
EOS
RNP
AWP
EAD
FAM
IRR
FEN
You are the best ;)
Thank you.
In the short term, they're down, like everything else. In fact, many are down more than market because one of the facets of ETF's is that they generally are thinly traded and lack adequate liquidity to handle a surge in selling pressure without a disproportionate movement in price. ETF's become decidedly volatile when the market goes off the edge, so when one smells impending panic, it's usually a good time to jettison or hedge ETF's.
However, it's that very characteristic which makes them exceedingly attractive in post-panic periods because in many cases their own prices have receded more than the prices of the portfolios they hold, i.e., they're selling at steeper-than-usual discounts to NAV. Buyers at these depressed moments stand to gain, not only the market performance of the underlying portfolios, but the gradual added return of the ETF price, as it moves relatively back towards its NAV.
Seems like high-yielding stocks would fit well into a retirement account because of the tax advantage minimizes the impact of those high payouts. Going to expand this strat because I have seen the moves these beaten down high yielders can pull off over time, plus as been stated, you get high payouts while you wait.
Nice work Tack
I think Dan Plettner follows a similar strat with CEF's, though not focused so much on the high-yield aspect:
covestor.com/dan-plettner
seekingalpha.com/autho...
My Net Payout Yield Model buys very few companies without yields surpassing 10%. How is that a low yield? Or even average?