PowerShares HighYield Dividend Achievers (PEY)

All Comments on PEY

  • commenter
    Patrick M
    Apr 09 08:12 AM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    Another reason not to buy dividend ETFs is that the expense ratio comes straight out of the dividends you receive, and dividend ETFs tend to have higher expense ratios than simpler index ETFs.


    On Apr 08 01:44 AM goatfarmer wrote:

    > On the subject of dividend ETFs, it may be worth noting that an ETF
    > will often pay less dividends than would a holding of the top 10
    > stocks in the ETF. The value of the ETF is in diversification. But
    > one wonders whether the additional marginal diversification in holding
    > the ETF over, say, the top ten holdings, is worth the diminution
    > of dividends.     Reply
  • commenter
    joenobody02
    Apr 09 04:52 AM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    The 1 year return of RMB (i.e. CNY) is 11+%. You dont do anything and at almost no risk. Just exchange your sinking USD for the Chinese yuan and put it in an interest bearing 1 year saving deposit account. Reply
  • commenter
    No Moss
    Apr 08 10:42 PM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    Oops, sorry, wrong thread on that Intel posting. Need my coffee. Let me add that I owned ADVDX and found that the generous dividend had a hard time keeping up with the drop in NAV. There's no such thing as a free lunch. Reply
  • commenter
    No Moss
    Apr 08 10:40 PM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    I encourage everyone to look at a five year chart of Intel and notice the month of April. Nuff said. Reply
  • commenter
    goatfarmer
    Apr 08 01:44 AM
    My Website
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    On the subject of dividend ETFs, it may be worth noting that an ETF will often pay less dividends than would a holding of the top 10 stocks in the ETF. The value of the ETF is in diversification. But one wonders whether the additional marginal diversification in holding the ETF over, say, the top ten holdings, is worth the diminution of dividends. Reply
  • commenter
    d_teller
    Apr 07 08:32 PM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    For over 30 years my family has invested (in mainly sheltered accounts) in mutual funds and stocks that pay dividends.

    Some long-term holdings, such as Southern (SO) and HealthCareProperties (HCP) and Nationwide Health (NHP) are even now priced much above where they were purchased. Others, such as (HRP and "Richly valued Reits") were sold last May, and replaced with CEFs that pay good dividends (e.g., FAX and AOD/AGD = relatives of ADVDX) even if they're in sheltered accounts. Other securities, such as (PCU) and (SID) were partially sold, when their portfolio position exceeded 5%, last Fall, and the proceeds were used to buy (ACAS) when its price was <$33, or (O) when its price dropped in the November mini-panic.

    The goal is to have one's "minimum required distributions" mostly covered by the dividend stream, so as not to be forced into sales when a security drops in value, but it's still one you'd like to hold.

    Last year, in October, (PTR) and (ACH) were also sold for two reasons: their prices went parabolic, but more importantly, they indicated that their dividend payouts would decrease, as they were devoting (via Central Bank of China directions) an increasing income stream to their own internal infrastructural requirements.

    The portfolio's structure is considerably overweighted to "foreign", (non U.S. securities and funds), and has been for more than 25 years, when it became obvious that U.S. securities had a high P/E and low dividend payout.

    For a younger person, below 40 years, I think GROWTH is a good risk bet...but as one contemplates retirement, and particularly when there is no more "new" money to invest, one needs a few years worth of cash (even if it is depreciating) and an emphasis on steady dividends to sleep well at nights.

    Not all the dividend-paying securities were "good buys"...some like (AHM) and, more recently (TMA),went "goodbye", but, overall, this is a slow growth (meaning MRD's don't zoom) and steady cash flow portfolio.

    Right now, I'll probably sell (BLXJF) & (OTT), and reinvest in (WIN) & (FRP). When (ATPWF) share prices drops a bit more, I'll probably add more...these all yield above 10%, and have for some time..but it's not a "buy & forget" portfolio.     Reply
  • commenter
    User 171371
    Apr 07 06:47 PM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    David, in the last 15 years I haver never bought anything that has not paid a divy.My time line is 2 to 9 years and it has worked for me.

    I own ADVDX(5% of portfolio) and collect a large divy monthly, yes my principal is down but if you believe in the markets I shall have it all back and more.     Reply
  • commenter
    Ralph F
    Apr 07 03:28 PM
    Why Dividend Paying Stocks Are a Mistake [view article]
    DVY's underperformance of the S&P 500 over the last 12 months illustrates a key problem with dividend ETFs: investors don't think about what's in them. Instead of thinking "I'm buying a dividend ETF", one should think "I'm buying a sector ETF full of financial, utilities etc."

    A sector ETF full of financials? That doesn't sound so good to many people right now.     Reply
  • commenter
    David
    Jackson
    Apr 07 03:27 PM
    My Website
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    Gary, count me in the dividend sceptic camp:

    Why Dividend Paying Stocks Are a Mistake
    seekingalpha.com/artic...
     Reply
  • commenter
    David
    Jackson
    Apr 07 03:24 PM
    My Website
    Why Dividend Paying Stocks Are a Mistake [view article]
    It turns out that this article was accurate for the last 12 months, when DVY has horribly underperformed the S&P 500.

    Airlelon, you said: "But you reached a conclusion after this based on an assumption. That assumption follows as such: That there is no guarantee that it will be paid, and that the taxes on said dividends make them pointless." However, I didn't focus my argument on the risk that dividends won't be paid, as opposed to pointing out that (a) well run companies with growth ahead of them should be better able to re-invest the capital in their business rather than pay it out as dividends, and (b) dividend payments are not efficient from a tax perspective.     Reply
  • commenter
    Tom B
    Apr 07 02:28 PM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    Gee. No, GE. Reply
  • commenter
    locke
    Apr 07 02:27 PM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    In theory there is no difference between dividend payers and non payers. In practice, there is. Dividend payers did better historically. One idea for the reason is that having to make dividend payments reminds management who really owns the company, thereby altering their behavior for the better. Reply
  • commenter
    goatfarmer
    Apr 07 09:11 AM
    My Website
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    Marol, I'll have a crack at explaining why I am now interested in dividends, since it's a good question and the answer is not obvious.

    First, I am retired and want an income stream. If I can get an average 2.5% dividend income on my portfolio, I can live reasonably on that. So, provided that the dividends don't all go down together, I'll be able to live of the divs and not touch the stocks, with the hope that eventually the stocks will provide capital growth.

    Secondly, I have now been 'in the markets' for about 13 years. I can look back and see what would have happened if I had invested in stable dividend-growing companies, such as KO and GE and JNJ, a little over ten years ago. I'd now be getting a yield of around 10% on my initial investment while still having the option of capital growth. The magic of compounding is a good reason to buy and hold strong dividend-growing companies

    Of course the counter argument is that money is money, whether dividends or capital appreciation. I could simply declare a 2.5% dividend from portfolio every year and live off that. Why sacrafice growth to dividends? True. But in this wild and wonderful world, where markets are volatile, the prospect of a modest, reasonably secure, yield is attractive. And many of the dividend companies that I am following have a good growth record, albeit not stellar. I'll be happy with modest stable growth.

    Also, if all other things are equal, why not invest in the companies that pay dividends? I am persuaded by the argument that what matters in a balanced portfolio is asset allocation among sectors rather than stock picking. If I can stock my sector shelves with dividend goodies, why not get the extra returns?

    I used to be a trader speculating wildly. I used to poo poo dividends as being for grannies. After reviewing my performance over ten years, I realized that I fell into the 'normal' category for traders who haven't been wiped out: average 3% per annum. I have since refocussed my attention on more modest goals, with the hope of greater returns. The modest return of a dividend portfolio fits the bill - or part of it.     Reply
  • commenter
    Marol
    Apr 07 04:07 AM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    ADVDX: NAV plunging over a year.

    I have posted this question before, but so far no answer.

    What is the point of dividends? I am told that the value of a stock drops immediately afterwards, the same amount as the dividend that was paid. So I don't see the benefit. Someone please explain -- and thanks!     Reply
  • commenter
    StateofConfu
    sion
    Apr 06 11:03 PM
    When the Economy Hands You Lemons, Consider Dividend ETFs [view article]
    For dividends, I use ADVDX mutual fund. The div. is much higher and they invest in a variety of companies which they can rotate. They also meet requirements for 15% max tax. So far I have not found anything better, except for a few individual stocks like FRO and PWE. Reply
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