Written by David Fabian, June 20th, 2017
Setting reasonable expectations for dividend income is an aspect of investing that many retirees have yet to embrace. With 10-Year Treasury yields hovering in the low two percent range, there is generally a need for other investment options to supplement high quality fixed-income. This is often when investors turn to exchange-traded funds that track a basket of riskier assets to generate the income they desire or to chase a top-performing market sector.
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Written by David Fabian, May 10th, 2017
Income investors have always had an affinity for master limited partnerships, or MLPs. These unique vehicles offer exposure to the energy sector through a high yield, equity-like security. Their business models and tax structures are such that they can pass through a great deal of their profits to shareholders in the form of dividends. This makes them coveted for both their unconventional returns vs stocks or bonds in addition to their healthy income streams. Read more
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.
Written by David Fabian, December 13th, 2016
Dividend growth is a theme with a committed following among income investors. Companies that have consistently raised their dividend on a year-over-year basis have generally done so because of solid business growth and a pledge to uphold shareholder returns. These stocks are also easy to screen and transform into a passively managed index for the benefit of diversified exchange-traded funds.
For example, the Vanguard Dividend Appreciation ETF (VIG) has $21.8 billion dedicated to a group of 185 large-cap stocks with a historical penchant for annual dividend increases. This type of investment vehicle can provide broad-based exposure to a certain segment of publicly-traded companies that all exhibit similar dividend characteristics.
But what if you want to participate in the trend of dividend growth in a broad basket of companies without actually owning the stocks themselves?
Written by David Fabian, October 17th, 2016
The arrival of new strategies within the closed-end fund (CEF) universe is always an interesting event. There are much fewer new CEFs released on an annual basis than the exchange-traded fund world, which makes this experience more noteworthy. Read more