Home
My E-books
for you
Pick Best stocks
4 Best Screeners
  My trading blog
FREE newsletter
  Stock chart analysis
Stock chart patterns
Trading strategy
Trading system
  Stock trading books
Stock trading journal
Trading software
Trading education
  ETF Trading
Commodity ETFs
  Active investing
Ways to invest
  My trading tips
Stock screeners
Daytrading
  About Me
Contact me
Disclaimer
Privacy Policy
Sitemap
SEARCH THIS SITE
  MY SERVICES
Ask me question

Dividend etf

is one way
of dividend stock investing

Dividend ETF investing is one possibility how to have nice gains from stock market even such market is in trading range and does not offer any significant return of investment. SP500 spent last decade (2000 - 2010) in very big range and buy and hold investors do not see any significant return in this time period.

It is one reason why I am proponent of more active investing and/or trading. I do it for myself and since 2008 I provide advisory services also for other investors. Such approach generate much better returns and profits then passive buy and hold investing.

But it is wise to use dividend exchange traded funds from time to time and place such exchange trade fund into portfolio. When I do not expect that market will be in important bull trend then it is better to put free cash into some pick from dividend etf list ad earn some yield.

Companies are full of cash these days (2011) in contrary to governments in developed world and often provide part of this free cash back to its shareholders.

Ishares ETF list

I found two dividend etf shares I would consider for my personal portfolio from time to time. Both are ishares ETF

HDV - The iShares High Dividend Equity Fund seeks investment results that correspond generally to the Morningstar Dividend Yield Focus Index.

Biggest holdings in this dividend etf producing etf dividends are to the date (Jul 2011):

Name Symbol Weight
AT&T INC T 9,97%
JOHNSON&JOHNSON JNJ 7,22%
PFIZER INC PFE 7,07%
PROCTER&GAMBLE CO PG 6,68%
VERIZON COMMUNICATIONS INC VZ 6,51%
MERCK&CO. INC. MRK 5,39%
PHILIP MORRIS INTERNATIONAL PM 5,07%

DVY - The iShares Dow Jones Select Dividend Index Fund seeks investment results that correspond generally to the Dow Jones U.S. Select Dividend Index.

Biggest holdings in this dividend etf producing etf dividends are to the date (Jul 2011):

Name Symbol Weight
LORILLARD INC LO 3,94%
CHEVRON CORP CVX 2,24%
VF CORP VFC 2,16%
ENTERGY CORP ETR 2,07%
INTEGRYS ENERGY GROUP INC TEG 1,86

Best dividend paying ETFs

In the past I did the exercise to sort out ETFs by dividends, but we think one should not be aware that lots of ETFs pay special dividends, so it is no remedy to look at past 12 months only. One should search primarily among debt asset class ETFs. Here today (Jul 2011), I would urge my clients to diversify away from USD into Asian currencies and Asian bonds. Our favorites are ETFs: ICN, ELD, AYT.

High-yield debt ETFs such as HYG have been popular in past 24 months but that trade is dead now as spreads have compressed and we would go neutral or underweight. If one has to go high yielders, we would pick bulletshares, or ETFs with a pre-determined day when all funds will be distributed. In these funds, bonds are basically held to maturity and one can get a decent roll-down by playing the steep yield curve. Look for Guggenheim ETF: BSJF.

Ticker

Dvd12M Yld - Net

TotalReturn YTD

DRW

11,2

2,091571

MLPL

10,76

7,912219

REM 

9,785

-1,372801

PSP

9,704

1,661751

RWX

9,003

2,572558

IIH 

8,87

-9,944331

PCEF

8,36

6,267929

JNK

8,168

4,981123



I have come across Dividend Income Investor.com which has lots of very useful information on historically undervalued dividend paying shares which I think you will like.



Return from from dividend etf back to best ways to invest money



Follow me on...



How to Select the Best Stocks & ETFs

I personally use very simple method How to Select the Best Stocks & ETFs for my trading. It is not rocket science to find really good stock pick and make money trading best stock or ETF pick.

Stock trading software reviews

What is best stock analysis and stock trade software? I have tested several stock trade software packages and I've selected AMIBROKER as my preferred stock chart software.

Stock trading journal

Every profitable trader should keep stock trading journal. I personally use these two solutions Both are very useful stock trading journals and help me to reach my profit goals.

Best
stock trading books

I cannot imagine that I could learn how to trade stocks without reading good stock trading books. Good stock market book helps a lot in learning phase but it also improves trading for a living. I always find something useful in some of them.