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PowerShares High Yield Equity Dividend Achievers Portfolio ETF

5/18/2013, 8:12 PM ET

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Friday, October 19, 2012, 9:10 AM "Investors need to understand the growing risks of overplaying the defense card," writes AllianceBernstein's Joe Paul, exploring whether high-yield stocks are in bubble territory. It's not news they're expensive compared to past metrics, but high-yielders now make up a record 44% of the S&P 500 (on a cap-weighted basis). "As a countermeasure, (investors) may want to add more cyclical, deeper-value names." 2 Comments
Friday, October 19, 2012, 7:37 AM Dividend investors get an interesting new choice with the launch of the PowerShares S&P 500 High Dividend ETF (SPHD), which comes with a low volatility twist. The fund picks 75 of the highest-yielding S&P stocks, but creates a portfolio of just those 50 exhibiting the lowest volatility. With an expense ratio of 0.30%, it's among the cheapest of the high dividend ETFs. 1 Comment [Quick Ideas]
Wednesday, October 17, 2012, 9:13 PM Currently weighting U.S. telecoms and utilities at zero in his dividend stock portfolio, Pimco's Brad Kinkelaar notes both sectors are trading at near off-the-chart premiums to their average relative multiple. Dividend investors would do better to look overseas, he says, where one can find companies that are growing, paying good dividends, and trading at better value. An excellent presentation. 7 Comments [Quick Ideas]
Saturday, October 13, 2012, 8:15 AM "Enough about the 'fiscal cliff.' What about the dividend cliff?" Jason Zweig notes that on Jan. 1, the maximum dividend tax rate will go from 15% to either 18.8% or a heart-fluttering 43.4% - which means some companies expected to pay billions in dividends in the first few days of 2013 could save investors a bundle by moving a little sooner. Don't miss: He harks back to Ben Graham's drastic proposal that all surplus cash go to dividends unless an annual-meeting vote explicitly provides for reinvestment. 46 Comments
Wednesday, October 3, 2012, 12:48 PM Net dividend increases totaled $8.8B in Q3, according to S&P, apparently a new record. Some 439 firms bumped their dividends, up 25.4% Y/Y, vs. just 53 lowering. Of more import, the payout ratio remains near its low of 34% vs. a long-term average of 52%. A strong rise in share prices reduced the average yield to 2.66% from 2.77% 3 months earlier. 2 Comments
Thursday, September 27, 2012, 3:06 PM Lagging far behind for much of the year, an international (developed markets) dividend fund (IDV) has pulled ahead of the popular domestic DVY (while sporting a higher yield as well). An emerging markets dividend fund (DEM) continues to trail both. 2 Comments [Global & FX, U.S. Economy]
Tuesday, September 11, 2012, 12:14 PM Dividend investors catch a break as Global X lowers the cost of its Super Dividend ETF (SDIV) to 0.58% from 1.14%. Just about a year old, the fund has nearly $120M in AUM and yields 7.7%. Perhaps applauding, investors give the fund a nice pop today relative to other dividend ETFs. 3 Comments
Monday, August 27, 2012, 5:07 PM Has the "worship of stocks turned into the worship of bonds," asks Sober Look, noting - as have others - massive inflows into bond funds at the expense of stocks. Worth a look is the disappearing spread between the average yield on 5-year corporates vs. the S&P dividend yield - one can now get nearly the same yield holding the broad stock market as holding corporate paper. 8 Comments
Thursday, August 23, 2012, 4:35 PM "Under the hood analysis" is a must for dividend ETF investors, says WisdomTree's Jeremy Schwartz. Screens at many funds will leave out Apple, for instance, which is now the 3rd largest dividend payer in the U.S. Other techs - now the fastest dividend growers around - face the same issue. Don't forget international exposure, where firms are more likely to pay dividends and offer a higher yield. 3 Comments [Quick Ideas]
Thursday, August 9, 2012, 3:39 PM The bubble isn't in dividend payers, writes Tadas Viskanta, it's in calling dividends a bubble. Research going back a long ways shows dividends have consistently provdied a significant part of equity returns and the high payers outperform the market averages. Does this mean the stocks are bulletproof? Of course not, but "dividends are the ultimate fundamental." 2 Comments
Thursday, July 19, 2012, 10:41 AM Index construction matters, says State Street in its in-depth look at Dividend ETFs (free registration required). The firm notes a combined investment in its U.S. (SDY), International (DWX), and Emerging Market (EDIV) dividend ETFs would have outperformed the broad market by more than 100 bps over the last 30 months. Comment!
Wednesday, July 11, 2012, 3:16 PM A look at differences in the makeup of 3 popular dividend ETFs: DVY is composed of 100 high-yielders with 32.2% of assets in utilities. HDV tracks a Morningstar index screening for companies with a "moat" - 28.7% of its funds are in healthcare. VIG is made up of firms that have raised their dividends every year for the past 10. The divergence in returns is significant. 1 Comment
Monday, July 9, 2012, 1:22 PM S&P 500 dividends hit $30.20 in Q2 (at a seasonably adjusted annual rate). It's a record high, while at the same time payout ratios remain near their lowest levels in 25 years. (via tradefast) 1 Comment
Friday, June 8, 2012, 12:31 PM Dividends may not be a free lunch, but WisdomTree research shows the highest quintile of payers outperformed the S&P 500 by 2.5%/year over the last half century, and with less beta. Even the 2nd highest quintile performed 2% better/year than the S&P. (a sampling) Comment! [Quick Ideas]
Thursday, June 7, 2012, 3:46 PM Seeing a huge surge of interest in "esoteric" investments (MLPs to name one) paying fat yields, one financial adviser sees the instruments approaching bubble territory. No such froth is evident in plain-vanilla dividend payers, VIG lagging the SPY for the last 2 years. Comment! [Quick Ideas]
Saturday, June 2, 2012, 10:00 AM Pass on the "ice cream" and focus on the "spinach," writes Brendan Conway, noting the S&P's high-yield stocks are trading at their greatest premium to the steady dividend growers in at least 20 years. High yields may presage low future dividend growth, make the stock more susceptible to rising interest rates, and will get hurt more in event of a tax hike. Possible picks: VIG, SDY. 2 Comments [Quick Ideas]