FMD Capital Management

Posts Tagged: dividend etf

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

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

New ETF Takes A Smart Look At Small Cap Dividend Stocks

Written by David Fabian, March 21st, 2017

Small cap stocks are traditionally known as centers of growth in the global capital markets.  These companies often demonstrate greater risk due to their diminished market footprint.  However, they also offer compelling performance and diversification dynamics for investors with a higher risk tolerance.

Most exchange-traded funds that track this segment are focused on broad swaths of the small cap category.  They typically own hundreds, if not thousands, of individual stocks with market capitalization’s of less than $2-$3 billion.

Read the complete article at NASDAQ.com

Preferred Stock ETFs Face New Test

Written by David Fabian, March 13th, 2017

Preferred stocks offer the distinction of being unique hybrid instruments with qualities of both stocks and bonds.  In that manner, they offer healthy dividend yields alongside a favored position in the capital structure of many companies that issue these securities.

The reason company’s issue preferred shares are to raise capital from investors that are seeking an attractive yield without adding traditional debt (bonds) that carry strict maturity dates and covenants.  Preferred stocks can also be “callable” from the issuer, who has the right to redeem them at a certain price or time at their discretion.   Read more

ETF Investors Seek Shelter In Investment Grade Corporate Bonds

Written by David Fabian, March 07th, 2017

Rising interest rates are making many bond fund investors nervous about the prospects for weakening future returns and unstable risk dynamics.  This fear is putting some fuel behind ETF strategies that short Treasuries or sectors such as bank loans that have historically performed well in a rising rate environment.

The PowerShares Bank Loan Portfolio (BKLN), which invests in a basket of floating rate notes and senior loans, has accumulated more than $2.4 billion since the U.S. election.  That confidence has so far been rewarded with a steadily rising price trend versus the volatility that has pervaded most aggregate bond benchmarks.

Read the complete article at NASDAQ.com