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
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, November 03rd, 2016
Investors who have entered the retirement phase of their life cycle or place great importance on income often have tunnel vision for high yield investments. In the majority of portfolios that I review, the most commonly chosen stock funds are all factoring for companies with the highest yields. Yield is inexplicably viewed as an important characteristic and has also been linked to a sense of safety or lower volatility. Read more
Written by David Fabian, August 16th, 2016
Today’s investors are increasingly focused on high yield stocks and bonds to enhance their portfolio income stream. This can often lead to asymmetric risk appetite in certain volatile areas of the global investment landscape.
Yet, one characteristic that is often overlooked is the advantage of quality companies that have consistently grown their dividends on a year-over-year basis. These stocks can offer an attractive counterpoint with differing risk characteristics than a traditional high yield or broad market benchmark.
There are several diversified ETFs in this category that solely look for stocks with steady and incremental income enhancements.
Read the complete article at NASDAQ.com
Written by Michael Fabian, September 18th, 2015
The double edged sword of the Federal Reserve’s interest rate policy is rearing its ugly head this morning as investors identify the true psychological meaning of a continuation of the status quo. The persistent dovishness points to a potentially weaker economy than most market participants were hoping for, which doesn’t sound so great, even though low interest rates could continue to spur growth into year-end. Read more