FMD Capital Management

Income Investing

3 Dividend Growth ETFs You Should Get To Know

Written by David Fabian, August 11th, 2017

Dividend growth stocks are public companies that have shown a track record of successive year-over-year increases in their dividend payments to shareholders.  They represent an attractive way for income investors to augment and further diversify their portfolios away from a strict high yield focus.

One of the easiest ways to own this group is through a low-cost and liquid exchange-traded fund.  If you’ve been around the ETF space for a while, you have probably heard of the Vanguard Dividend Appreciation ETF (VIG) or the ProShares S&P 500 Dividend Aristocrats ETF (NOBL).  Both funds own a basket of stocks with dividend growth characteristics and have proven to be sound investment vehicles in their own ways. Read more

What You Need To Know About Rising Rate Equity ETFs

Written by David Fabian, August 08th, 2017

The concept of rising interest rates is one that investors have been worried about for many years. While we have yet to experience an extended period of rising Treasury bond yields in the last several decades, that hasn’t tampered fears of how such an event would unfold and to what magnitude.

Interest rates, like stocks or commodities, go through cycles of rising and falling trends that can have a pronounced impact on your portfolio returns. Fixed-income assets experience the highest level of inverse correlation with interest rates. However, there is also an undeniable impact on certain stock market sectors as well.

Read the complete article at NASDAQ.com

It’s Been A Dreary Year For High Dividend ETFs

Written by David Fabian, July 25th, 2017

If there is one asset class that conservative investors love to own, it’s dividend stocks. These high payout companies differentiate themselves from their growth-oriented peers by electing to return earnings to shareholders in the form of quarterly income. This presents an attractive way for retirees and other income-focused investors to participate in the equity markets as well as boost the aggregate yield of their portfolio.

Dividend stocks are unique in that their business models are generally well-established with healthy cash flow or capital financing capabilities. In some instances, these attributes can also lend themselves to lower volatility than a basket of high growth stocks focused on cash burn and product or services innovation.

Read the complete article on NASDAQ.com

Put TCW’s New Actively Managed Bond ETF On Your Watch List

Written by David Fabian, July 22nd, 2017

I’ve always been a big fan of actively managed bond funds as a way for investors to access risk managed or alpha-generating strategies.  Unlike active stock pickers, the best managers from the likes of PIMCO, DoubleLine, Guggenheim, and Loomis Sayles have proven track records of adding value for their investors versus a passive benchmark.  Fixed-income is still one of those asset classes where sector positioning, duration targeting, and credit selection can make a huge impact on net returns.

Look back through my blog and you will see numerous references to some of my favorite funds like the DoubleLine Total Return Bond Fund (DBLTX) or the PIMCO Income Fund (PONDX).  We have owned both for our clients and in our own accounts for years.  Read more

Dealing With A Dividend Cut In Your CEF Portfolio

Written by David Fabian, July 12th, 2017

If you dabble in the closed-end fund market long enough, you are probably going to own a fund that sees its dividend cut.  This seemingly innocuous event can have numerous ripple effects for shareholders that should be carefully evaluated before you respond with any knee-jerk reactions.  Read more