The Hunt for Yield Part Three: Getting dividends is easy, picking the right ETF is hard.

Charles Booker said there were only seven basic plots in literature; turns out the same is true for ETF’s, they just have billions more to spend on advertising. 

-The Yinzer Analyst. 

If you’ve been beaten over the head with one investment theme in 2016, it’s that you need dividends.  Some want the income stream and the low volatility, some want the capital gains from the first group buying up dividend stocks and others just want their annoying clients to go away and think buying yield is a good way to make that happen.  We’ve already talked about why dividends aren’t likely to continue growing at the same rate in the future and what dividend payers are still “cheap” in this market but now comes the hard part, finding a good fund wrapper to buy them in.  Unfortunately for many investors, that means buying an ETF and then forgetting it, but I haven’t come to either bury ETF’s or praise them.  Instead I want to educate investors so they can avoid doing the one thing that will guarantee them a spot in the next Dalbar study; buying something that’s already expensive because they’re afraid and think it’ll solve all their problems.  Continue reading

The Hunt for Yield Part Two: What’s Still Cheap in This Market

So if our last post on how dividends aren’t likely to continue growing in the near future, or that they even might begin to contract, didn’t turn you off on finding some high paying stocks, then you’re probably starting to ask yourself what’s the best way to go about buying them?  The rise of passive investing means that most people will simply settle for an ETF or mutual fund instead of building their own portfolio of individual stocks and for many this is as simple as finding the strongest performing fund with the word dividend in its name and/or trying to find the lowest possible fee.  Seems easy but that overlooks one very important fact, that you don’t know anything about what’s actually in the fund!  Continue reading

The Hunt for Yield Part One: Can Dividends Continue to Grow?

“Those wounds are all the painful places where we fought. Battles better left behind, ones we never sought. What is it that we spent and what was it we bought?”

-Frank Herbert

What quote could better serve up the dilemma facing investment managers as another week of new highs for the S&P 500 which has them wondering, “to chase or not to chase?”  One the one hand, you have a line-up of investment greats like Byron Wein and Jeff Gundlach who think stocks are overbought, not to mention a likely fifth consecutive quarter of declining earnings and on the other…well you have demanding clients who see the market higher and want to participate or an angry MD telling you to clean out your desk if you’re not in the upper quartile this year.  So what do you do?  Continue reading

The Yinzer Analyst is Back!

So looks who’s come skulking back.  Remember in that last post when I said I would never again let this blog go unattended for long periods of time?  Well so much for that right?  Unlike a lot of financial bloggers, I won’t try to stretch the truth and tell you that I was off starting my own hedge fund, curing cancer or lounging on a yacht with a beautiful princess.  There were actually two princesses.  Continue reading