Ed_The_Gypsy
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
It is time to ask the group. This is excerpted from another thread.
I have recently become more interested in dividend investing. Which is another way to say that the collapse of my protfolio has moved me to review what I have been doing. I am considering replacing part of my index funds with one or more dividend ETFs.
I only recently found the Dividend Growth Investor weblog site, where several ETFs were mentioned--PFM, SDY, PID, DVY and PEY, among others. I then found Vanguard's VIG (9.15% financials & 9.03% energy) and did a little investigating.
I like the components of VIG, but the yield is a little low (3.42%).
PEY is 2/3 financials and I don't like that at all. A non-starter.
DVY also is high in financials. I had eliminated DVY from consideration before I read Running_Man's comments in another thread and realized I needed to learn more about these ETFs before I consider buying any--hence this thread.
PFM and SPY have similar performance. I like PFM's larger energy content (10.8% vs 1.3%) and lower financials content (17.9% vs. 22.4%) and I like their 10 largest holdings a lilttle more than SDY, but SDY has the methodology--the S&P High Yield Dividend Acheivers--and a better yield (6.27% vs. 3.57%). On the surface of it, I favor SPY.
PID is International Dividend Acheivers, which are difficult for me to evaluate. It has a high financials content (34.6%), but good energy content (6.7%) and a nice yield (7.93%), although it is suspiciously high.
So, PFM, SDY, PID and VIG look interesting to me. I have my own ideas about energy stocks these days, so being light on energy does not bother me.
The financials content seems to be associated with higher yields. I am a lot more comfortable with Canadian banks and financial institutions than I am with any in the US at this time. So, I don't think that all financial institutions are bad--but I could be wrong.
I am not quite ready to go the individual stock route beyond a couple of energy stocks and BRK-B (which may have been a poorly timed purchase). These ETFs look like a reasonable way to start out.
Comments, please! I have been trying to educate myself on dividend ETFs, but there are a lot of gotchas! I weant to avoid doing something stupid.
Thanks,
Ed
I have recently become more interested in dividend investing. Which is another way to say that the collapse of my protfolio has moved me to review what I have been doing. I am considering replacing part of my index funds with one or more dividend ETFs.
I only recently found the Dividend Growth Investor weblog site, where several ETFs were mentioned--PFM, SDY, PID, DVY and PEY, among others. I then found Vanguard's VIG (9.15% financials & 9.03% energy) and did a little investigating.
I like the components of VIG, but the yield is a little low (3.42%).
PEY is 2/3 financials and I don't like that at all. A non-starter.
DVY also is high in financials. I had eliminated DVY from consideration before I read Running_Man's comments in another thread and realized I needed to learn more about these ETFs before I consider buying any--hence this thread.
PFM and SPY have similar performance. I like PFM's larger energy content (10.8% vs 1.3%) and lower financials content (17.9% vs. 22.4%) and I like their 10 largest holdings a lilttle more than SDY, but SDY has the methodology--the S&P High Yield Dividend Acheivers--and a better yield (6.27% vs. 3.57%). On the surface of it, I favor SPY.
PID is International Dividend Acheivers, which are difficult for me to evaluate. It has a high financials content (34.6%), but good energy content (6.7%) and a nice yield (7.93%), although it is suspiciously high.
So, PFM, SDY, PID and VIG look interesting to me. I have my own ideas about energy stocks these days, so being light on energy does not bother me.
The financials content seems to be associated with higher yields. I am a lot more comfortable with Canadian banks and financial institutions than I am with any in the US at this time. So, I don't think that all financial institutions are bad--but I could be wrong.
I am not quite ready to go the individual stock route beyond a couple of energy stocks and BRK-B (which may have been a poorly timed purchase). These ETFs look like a reasonable way to start out.
Comments, please! I have been trying to educate myself on dividend ETFs, but there are a lot of gotchas! I weant to avoid doing something stupid.
Thanks,
Ed