Dividend ETF discussion

[Justmakinmoney]

I was just wondering if anyone has invested in this dividend ETF? DVY by iShares



Why or Why not would this be a good investment?

[Lou]

I dont invest in ETF's or trade them. I think they are best used for hedge funds. Your getting a 3% dividend and being charged .40 in expenses. I'd rather just buy GE. Im sure there are people who believe ETF's are a great tool though. It has a great basket of good stocks.

[Amnion]

I own some shares in DVY. I've only had it a say 6 months and gotten a few dividends. The price has also increased about 3% since I bought.

I think its just as good as some of the income mutual funds that charge a lot more in management fees. There are obviously better paying funds out there but you don't need to met any minimums to get into DVY. I guess it just boils down to your own likes and dislikes.

It is more stable than a single stock so less to worry about from a volatility standpoint.

Just my 2 cents

[Justmakinmoney]

I dont invest in ETF's or trade them. I think they are best used for hedge funds. Your getting a 3% dividend and being charged .40 in expenses. I'd rather just buy GE. Im sure there are people who believe ETF's are a great tool though. It has a great basket of good stocks.

But the fund has also had an annualized return of 13% for the last few years. And the rate of .4% is pretty good for beating the S&P and 3% dividend.

[blackhawkzone]

you may be better off just investing in a value etf.

I have noticed that the expenses for etf's for dividends are a lot higher, which means less money in your pocket.

For example, taking Vanguard.

Expenses:

Dividend Apprec ETF VIG 0.28%
High Dividend Yield ETF VYM 0.25%
Value ETF VTV 0.11%

Yield:

Dividend Apprec ETF VIG 1.56 %
High Dividend Yield ETF VYM 2.59 %
Value ETF VTV 2.56%

Last Dividend Payment:

Dividend Apprec ETF VIG Quarterly Dividend $0.25100 12/22/2006 12/27/2006 12/29/2006 — 1.56% B
High Dividend Yield ETF VYM Quarterly Dividend $0.17500 12/22/2006 12/27/2006 12/29/2006 — 2.59% B
Value ETF VTV Quarterly Dividend $0.51000 12/22/2006 12/27/2006 12/29/2006 2.56%

[Imperator]

I've looked into it, but is just doesn't have a very high yeild.


If you're looking for yeild, I have MO @ 4%, ACAS @ 8%, and I'm looking at T @ 4%.

But I'm also looking into Bond ETFs, such as PHK and JFR, which yeild around 8-9% with monthly payouts.

[optimus25]

DVY is a great ETF. I've been watching it for close to 4 years now and always regret not getting in. The Yield has always hovered around this level, even though the fund continues to appreciate in value.

What people don't realize when investing in ETFs is that along with the underlying Index that it tracks, it also rebalances along with the index. So, you get instant diversification and rebalancing, as well as growing dividend yields along with capital appreciation. It beats out index funds because you can buy and sell during market hours in real time as opposed to getting the closing price of the index mutual fund.

[optimus25]

I've looked into it, but is just doesn't have a very high yeild.


If you're looking for yeild, I have MO @ 4%, ACAS @ 8%, and I'm looking at T @ 4%.

But I'm also looking into Bond ETFs, such as PHK and JFR, which yeild around 8-9% with monthly payouts.

I own ACAS.

I also like AINV & ARCC

When looking at a closed end fund such as JFR, you have to look at whether or not it trades at a discount to NAV. The greater the discount % the bigger your cushion. I bought JFR last year (when the discount was greater than 5%) and just sold it two days ago for a nice profit.