Among the dividend ETFs that I have examined, SCHD seems to come closest to accomplishing what dividend growth investors typically do. Here are things that I like about it. It picks stocks based on a combination of fundamental analysis, dividend, and dividend growth characteristics. Most of its stocks are ones that fit most investors' definition of high quality.Its yield (2.9%) is high enough to pass many dividend growth investors' minimum requirements. It has an extremely low expense ratio, so most of the dividends collected by the ETF actually flow through to the investor. Once a stock is in the portfolio, the criteria for keeping it are relaxed. This keeps turnover (and the expenses associated with turnover) down.
NOBL is not a good ETF, in my opinion. Its expense ratio is outrageous for an ETF that is following a common, well-known index. Its yield of 1.9% is the same as SPY's yield. A dividend-focused ETF should have a larger yield than a plain-vanilla S&P 500 tracker. NOBL's yield trails its own index's yield by a wide margin (the index's yield is 2.2%). Too much income is being absorbed by NOBL's expense structure, and that situation will get worse next year if NOBL terminates its subsidies of expenses as scheduled.
Source: Seeking Alpha
Related Articles:
- Mid-Year 2014 Top And Bottom Performing Dividend Stocks
- 6 Dividend Stocks With A Low P/B Ratio
- Are Storm Clouds Gathering For These 5 High-Yielding Securities?
- Why Dividends Matter
- 6 Stocks Currently Trading Below their Fair Value
Are SCHD And NOBL Good Dividend Growth Investments?
Posted by D4L | Sunday, November 02, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Despite all that work, its valuation remains dirt cheap. That's a big reason why its distribution currently yields more than 9% despite ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.