Many of the readers of this blog are especially interested in our monthly top dividend stock picks but like myself, they are looking for easier ways to get it done. Buying high dividend yield names can bring great rewards but it can also carry its own risk. Often, a stock with a high dividend yield is attractive but it look so because many investors are already anticipating that the dividends will be decreased (usually because the company cannot afford to keep up with the payments) and there goes that great dividend yield you were anticipating. That is why I usually include earnings information when I present this info. A high dividend yield in a company that is losing money is never a good sign.
But as regular readers know, I am a big fan of ETF’s and in terms of dividends, they can be a very good solution. Instead of picking one company, you are picking several dozens of high dividend yield names. One or two might reduce their payouts, but that would have a very limited impact on the entire ETF.
At first I figured I would compile a list of the top “dividend ETF’s” or perhaps the top “fixed income” ETF’s (which I will do next week) but I ended up seeing a lot of other opportunities in areas such as Real Estate ETF’s. So here is the complete list of the top 50 Dividend ETF’s:
Ticker Name Price PE Ratio PE Next Year Return YTD Sales Growth Analyst rating Book Value Beta Revenue/Share Sales 5Y Avg Growth EPS 5Y Avg Growth Sales 5Y Avg Growth EPS 5Y Avg Growth
IACI IAC/InterActiveCorp 60.47 31.96 18.62 -0.53 7.93 4.29 23.57 1.09 36.21 19.07 141.49 N/A N/A
PCLN Priceline Group Inc/The 1039.98 23.34 16.9 -8.79 29.13 4.62 166.82 1.23 133.4 31.51 30.83 N/A N/A
There were a few surprises such as seeing a pharmaceutical ETF or real estate ETF’s but in general, the top ETF’s are either composed of preferred shares or some type of corporate bonds, usually high yield. I personally like many of these picks. What about you guys?