7-ETF Portfolio For The “It’s Not Going To Get Better” Crowd | Main | Commodity ETFs: When Will Investors Buy “Stuff” Again?

Huge Dividend Payouts From Sector ETFs and Country ETFs

03 November 2011 at 11:05 am by Staff     Bookmark and Share    Follow EtfExpert on Twitter

There is an erroenous assumption that some investors make about Dividend ETFs. For one thing, many mistakenly believe that a fund needs to be labeled as a dividend exchange-traded product to provide a high level of income. For another, many fail to look overseas.

Granted, Vanguard Dividend Growth (VIG) is a fine example of capturing long-term gains from corporations that consistently raise their dividends every year. Yet those in pursuit of a current income stream might be disappointed by the annual yield of 2.4%.

In contrast, an investor in Vanguard Utilities (VPU) might enjoy 4% annualized. Similarly, an investor in WisdomTree ex Financials (DTN) might take in 3.6%.

Even more remarkable, investors rarely focus on the high dividends that foreign corporations can bring to the table. WisdomTree Emerging Markets (DEM) and SPDR S&P Emerging Market Dividend (EDIV) may yield 5% to 6%. And for those who are bold enough to stand by volatile funds like iShares MSCI Brazil (EWZ) or iShares MSCI Australia (EWA), the annual income reward is as high as 6.5% and 5.5% respectively.

The Surprising Source For Big Dividends – Dan Caplinger, Motley Fool
Top 10 Industrial Sector ETFs – Dave Fry, The Street
Gold Clears Key Hurdle: Can It Hold? ABX, GG Lead Miners Higher – Murray Coleman, Barron’s
Consumers Are Scared? Really? – Paul R La Monica, CNN Money
Bonds, ETFs And The Currency Connection – Matt Tucker, Seeking Alpha    

 

 

You can listen to the ETF Expert Radio Show “LIVE”, via podcast or on your iPod. You can follow me on Twitter @ETFexpert.

Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.

Share this post:
  • Print this article!
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google
  • E-mail this story to a friend!
  • Live
  • MySpace
  • TwitThis
  • Yahoo! Buzz

Tags | , , , , ,


Receive ETF Expert Daily By Email

Leave a Reply

Free Sign-Up                     ETF Expert RSS Feed  Follow EtfExpert on Twitter

Receive ETF Expert Daily By Email
Get The Weekly ETF Expert Newsletter

Archives