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The Case for a High and Growing Dividend Stock Strategy in Retirement Portfolios
Reply to @ron: Not that there's anything wrong with that fund but it's mandate "Schwab U.S. Dividend Equity is a dividend-focused ETF that targets high-quality stocks with moderate, sustainable income instead of high yield" suggests that the holdings may not always hold the top dividend payers or yielding stocks.
Now THAT was an interesting read. While I got no dog in this fight so far, the article suggests an international bent may be necessary. Google reveals WDIV, which looks interesting: yield over 4%; 99 holdings. Newish (less than a year of history, but the article suggests one just collects the dividend and keeps breathing - for quite a long time, admittedly); M* large value, as one would expect; ER 0.40. Vanguard doesn't seem to have a competitor.
The S&P Global Dividend Aristocrats Index is designed to measure the performance of high dividend-yield companies included in the S&P Global BMI (Broad Market Index) that have followed a managed-dividends policy of increasing or stable dividends for at least ten consecutive years.
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Same thing with Global X SuperDividend US etf (DIV) - hasn't been able to attract barely any assets.
The Global X SuperDividend™ U.S. ETF tracks the performance of companies that rank among the highest dividend yielding equity securities in the United States. By equal weighting across a diverse group of 50 securities, investors have less exposure to single-company risk. Sector caps of 25% are used to ensure that the portfolio is not heavily overweight in a particular sector and to provide an additional layer of diversification. A low-volatility filter is also used in an effort to dampen the volatility of the portfolio. Furthermore, all companies are reviewed on a quarterly basis and can be removed from the Index if they forecast a significant dividend cut. The Fund expects to pay monthly dividends.
While we have used SDY extensively since 2009, we are capturing all gains there through the end of the year, pulling holdings back to no more than the original investment amount. The high-dividend stocks have had a tremendous run, but I am much more comfortable now with a growing-dividend strategy. Goldman's GSRLX has done very well for us the last few years, and we have been holders and investors in Thornburg's TIBIX since shortly after it started. Both funds have done as we would expect...never shoot the lights out, but never in the dog house. They have rather strict buy and sell disciplines, and management has been forthright and honest. We have not considered PQIIX, even though one of its managers came from Thornburg, because we are not interested in PIMCO's derivative-enhanced strategy with this kind of fund. We prefer a fairly straight-forward approach. A plus for us with GSRLX is their ~20% allocation to MLPs which we like.
So with that they also have a Worldwide High Dividend Value Fund.
And of course I also like the Vanguard dividend options for inexpensive US exposure to dividend stocks.
Wisdomtree has some options too --- here's a description of the index that the Global Equity-Income etf (DEW) tracks:
The WisdomTree Global Equity Income Index* is a fundamentally weighted index that measures the performance of high dividend-yielding companies selected from the WisdomTree Global Dividend Index, which measures the performance of dividend-paying companies in the U.S., developed and emerging markets. At the index measurement date, companies with market capitalizations of at least $2 billion are ranked by dividend yield and those companies in the top 30% by dividend yield are selected for inclusion in the Global Equity Income Index. Companies are weighted in the index based on annual cash dividends paid.
Comments
Regards,
Ted
Stay warm, Derf
While I got no dog in this fight so far, the article suggests an international bent may be necessary. Google reveals WDIV, which looks interesting: yield over 4%; 99 holdings. Newish (less than a year of history, but the article suggests one just collects the dividend and keeps breathing - for quite a long time, admittedly); M* large value, as one would expect; ER 0.40. Vanguard doesn't seem to have a competitor.
Interested see who has a better option.
https://www.spdrs.com/product/fund.seam?ticker=WDIV#
Fact Sheet
https://www.spdrs.com/library-content/public/ETF-WDIV_20130930_102545.pdf =====
Same thing with Global X SuperDividend US etf (DIV) - hasn't been able to attract barely any assets.
http://www.globalxfunds.com/DIV/IC
http://www.tweedy.com/resources/library_docs/papers/TheHighDivAdvantageStudyFUNDweb.pdf
So with that they also have a Worldwide High Dividend Value Fund.
And of course I also like the Vanguard dividend options for inexpensive US exposure to dividend stocks.
Wisdomtree has some options too --- here's a description of the index that the Global Equity-Income etf (DEW) tracks:
Stay warm, Derf