Not exact matches
Investors have long known that a
high -
dividend strategy has been subject to various «
yield traps,»
such as those stemming from temporarily
high earnings,
high payouts or falling
stock prices.
High -
dividend stocks such as utilities and phone companies fell; those
stocks are often compared to bonds and they tend to fall when bond
yields rise, as
higher bond
yields make the
stocks less appealing to investors seeking income.
This forced investors to seek income from «bond - surrogate» investments
such as
high -
dividend - paying
stocks,
high -
yield bonds, levered loans and real estate.
Typically, it connotes the purchase of
stocks having attributes
such as a low ratio of price to book value, a low price - earnings ratio, or a
high dividend yield.
Value
stocks: companies that appear to be underpriced based on a number of fundmental factors,
such as low price - to - earnings and price - to - book ratios or
high dividend yield
The positions the bloggers and commentary took against reinvesting
dividends centered on whether the
stock price would be good at the time of the reinvestment; and it mentioned strategies like pulling the
dividends out and either putting them into a
high -
yield savings account or accumulating them until
such time there was enough to make a new investment into some other
stock or
stock fund.
Consistently with the
stock holdings of the analyzed portfolio, the reference portfolio comprised large - cap equity ETFs,
such as the Guggenheim S&P 500 ® Top 50 ETF (XLG), PowerShares
High Yield Equity
Dividend Achievers Portfolio (PEY), PowerShares
Dividend Achievers Portfolio (PFM), and iShares Morningstar Large - Cap Value ETF (JKF).
At
such prices, you should be able to buy many
high quality (blue chip)
stocks at extremely attractive
dividend yields.
Still, some popular
high -
yielding asset classes (
such as traditional
dividend - paying
stocks and REITs) could potentially suffer as rates begin to slowly trend
higher.
A
high dividend yield signals out - of - favor
stocks, but many
such stocks are out - of - favor for good reason — they are financially troubled.
Our current allocation of 45 % -50 %
stock — only large - cap U.S.
stock — is spread across ETFs holdings
such as iShares MSCI USA Minimum Volatility ETF (NYSEARCA: USMV), iShares MSCI USA Quality Factor ETF (NYSEARCA: QUAL) and Vanguard
High Dividend Yield (NYSEARCA: VYM).
Value
stocks: companies that appear to be underpriced based on a number of fundmental factors,
such as low price - to - earnings and price - to - book ratios or
high dividend yield
Furthermore due to regulatory risk and a desire for acquisitions a
dividend may not be sustainable and as we know
stocks trading at
high dividend yields are usually expressing
such.
The SPDR S&P International
Dividend ETF is designed to invest in the 100 highest - yielding international stocks that pass certain quality requirements, such as positive 12 - month trailing earnings per share, and a dividend coverage ratio abov
Dividend ETF is designed to invest in the 100
highest -
yielding international
stocks that pass certain quality requirements,
such as positive 12 - month trailing earnings per share, and a
dividend coverage ratio abov
dividend coverage ratio above 100 %.
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..
In addition, focus on those funds that hold most of their assets in
stocks because screening the
stock - fund universe for
high dividend yields alone will turn up some funds that have substantial stakes in bonds and other assets
such as convertibles.
The latest decline of Dominion Resources» share price is a good opportunity to buy D at its current price level and its
dividend yield of currently 5.19 % is very
high for
such a
stock.
Typically, it connotes the purchase of
stocks having attributes
such as a low ratio of price to book value, a low price - earnings ratio, or a
high dividend yield.
As a result, a very
high yield can be a danger sign, and
such stocks have a nasty habit of reducing or eliminating their
dividends altogether.