FMD Capital Management

Posts Tagged: high income

How Safe Is Your High Yield ETF?

Written by David Fabian, October 18th, 2017

The strong outperformance of credit-related securities and progressive trend in interest rates has emboldened many investors to bulk up on high yield funds over the course of this bull market.  The minimal dividends from traditional CDs and high-quality Treasury bonds leaves little to be desired when compared to corporate or municipal debt yielding magnitudes of greater income.

The combination of high dividends, consistent capital appreciation, and relatively low volatility have made for an attractive opportunity for many income investors portfolios.

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

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

Maxing Out Dividend Yields Using ETFs

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.

Read the complete article at NASDAQ.com

 

Presentation: Generate High Income And Alpha Using Closed-End Funds

Written by David Fabian, May 18th, 2017

I was fortunate enough to be invited to speak at the Las Vegas Money Show this week and chose to deliver an educational presentation on closed-end funds (CEFs).  My focus was on the right way to analyze, select, size, and trade these unique investment vehicles.

There are a number of advantages to using CEFs in your portfolio – from bolstering your high yield exposure to tapping into an active investment managers’ prowess.  Whatever your goal may be, these tools can be an effective way to generate income and alpha when used correctly.  Below are the PowerPoint slides from my presentation that you can download to view.

May 2017 CEF Presentation Slides