How to Play the Dividend Trend – FundX Pres. Janet Brown on The Street & Investor’s Business Daily

May 20, 2016

TheStreetFunds that invest in high-dividend-paying stocks have been in favor this year, but if you want to capitalize on the dividend trend, there are a few things to keep in mind, as FundX President Janet Brown wrote in 3 Tips for Profiting From the High-Dividend ETF Trend on The Street.

Here’s a preview:

Tip #1 –  Focus on ETFs with strong recent returns

“While some dividend funds have had strong recent returns not all dividend funds have done well lately,” Janet wrote, so don’t just buy any dividend fund, look for strong performing funds.

Tip #2 – Take risk into account

“Some dividend funds are riskier than others: they may invest in more volatile areas of the market, like small caps or emerging markets, or they may have more concentrated portfolios,” Janet wrote. That’s why you’ll want to consider how risky a fund may be before you buy it.

To get Janet’s final tip, click over to The Street.

3 ETFs with Strong Recent Returns

ibdOne leading dividend ETF is PowerShares High Yield Equity Dividend Achievers Portfolio (PEY), which was one of Janet’s three ETF picks in Investor’s Business Daily.

“PEY tracks the Nasdaq U.S. Dividend Achievers 50 index, which has historically been more volatile than the relatively placid Dow Jones U.S. Select Dividend index,” Janet noted. But it “offers significantly greater income than a 10-year U.S. Treasury, with the added appreciation potential of a diversified stock portfolio.”

Janet also chose a mid-cap value ETF and an ETF that invests in low-volatility stocks. Click here to get her picks.

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