The high
dividend yield advantage is evident in the high returns of the SPDR S&P Dividend ETF (SDY)(see table).
Not exact matches
For the following F - series funds, these dates were: Corporate
Advantage Fund (September 11, 2015), High
Yield Bond Fund (hedged and unhedged)(September 11, 2015), Canadian
Dividend Fund (September 11, 2015), US Equity Fund (May 25, 2016), US
Dividend Fund (September 26, 2016), US Small / Mid-Cap Equity Fund (October 31, 2016), International Equity Plus Fund (May 25, 2016), Income
Advantage Fund (September 11, 2015), and Balanced Fund (August 25, 2015).
Another
advantage is REIT s ability of sharing large commercial buildings, such as Hotels Strip Malls or Industrial property There is no minimum investment in REITs either They also pay
yields in the form of
dividend...
Take
advantage of a cheaper market for a better
yield to get more
dividend income.
As a good rule of thumb, high -
yield investments or investments that produce high
dividends should be in an IRA / 401 (k) whereas low -
yield investments, tax - exempt bonds and international investments (if you pay foreign taxes, to take
advantage of the foreign taxes paid deduction) is better placed in a taxable account.
While eligible
dividends from Canadian companies are tax - favoured (especially if you're in a low tax bracket), not all high -
yield ETFs have that
advantage.
My portfolio performance is not doing that well at this market moment, however I ignore the market noise and I am using this to my
advantage by buying companies with great
dividend yield and valuation.
In the end, unless you're willing to spend a lot of time learning how to properly short stocks, use price drops on
dividend growth investments to take
advantage of the increased
yield.
Hsu et al. (forthcoming) document that in terms of Sharpe ratios, the value strategy defined as
dividend yields provides an economically and statistically significant
advantage.
One buying opportunity in preferreds that Cheng has taken
advantage of is Brookfield Office Properties Inc. «s (series T) rate resets, which offer a current
dividend yield of about 5.5 per cent and are callable in December 2018.
DIV STRK is consecutive years of
dividend increases; DIV YLD is
yield using the most recently announced
dividend; 5 YR YLD is average
dividend yield over the past 5 years; REC DG is most recent year - over-year
dividend growth; 5 YR DG is average annual
dividend growth over the past 5 years; PRICE was at market close Friday, March 2; FAIR VAL is Morningstar's «Fair Value Estimate»; FWD P / E is price / earnings ratio based on projected 2018 earnings; 5 YR P / E is average P / E ratio over the past 5 years; MOAT is Morningstar's rating of competitive economic
advantage; SFT is Value Line's «Safety» score; CRD is Standard & Poor's credit rating; MKT CAP is market cap in billions of dollars.
Second, investors get their money faster and are better able to take
advantage of compounding the
yields on the
dividends themselves.
Dividend yields remain relatively attractive compared to other instruments such as corporate bonds, treasuries, and bank CDs, especially considering the lower (permanent) tax rate
advantage.
Since bonds no longer offer a significant
yield advantage, inflation risk has increased and the scales are currently tipping more in favor of higher -
yielding dividend paying stocks, at least in my humble opinion.
Investing in foreign stocks offer many
advantages such as a wide universe of stocks to choose, higher
dividend yields in some markets, different earnings growth rates and potential high growth opportunities, etc..
The historical record has been kind to
dividend investors, as you can see in «The Canadian high -
yield advantage,» which can be found in the April 2012 edition of MoneySense magazine (on newsstands until early May).
It's perfectly positioned to take
advantage of huge trends in tech, and investors who buy the stock now are looking at a 4 % - plus
yield, inflation - smashing
dividend growth, and the possibility that shares are 37 % undervalued.
The company has a 3 % +
dividend yield, solid 7 % to 9 % constant currency earnings - per - share growth expectations, and a strong competitive
advantage.
Lots more in the publication The High
Dividend Yield Return
Advantage by Tweedy Browne.