FMD Capital Management

Posts Tagged: income investing

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

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

 

My Favorite ETFs Have Nothing To Do With Trump

Written by David Fabian, April 29th, 2017

The first 100 days of Donald Trump’s presidency has been good for the stock market.  Whether you agree with his policies or not, there is optimism for the future of the global economy that is being reflected in the recent price action.

Now, of course, that doesn’t mean we are going to see a straight path of gains for the next four years.  There are going to be a myriad of stumbling blocks, uncertainty, and possibly even a bear market that will creep up when we least expect it.  Those declines will be opportunities for those who are ready to take advantage with cash on the sidelines and a well-tuned watch list of solid funds to buy. Read more

The 3 Biggest Treasury Bond ETFs And How To Use Them

Written by David Fabian, April 18th, 2017

Treasury bonds continue to be a stalwart position among income investors and those who opt for credit quality over yield or other characteristics of fixed-income.  Treasuries benefit from the highest credit rating possible and are backed by the full faith of the U.S. Government.  They are also the most directly susceptible to interest rate fluctuations and would perform poorly during a secular period of rising rates.

One attractive way to own Treasury bonds is through a diversified exchange-traded fund (ETF).  This vehicle creates the flexibility to directly hone in on a certain maturity or index methodology in an extremely low-cost and liquid package.

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