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Consider Investing in Dividend Dandies

A key reason a person might invest in a smart beta fund would be to use the fundâ??s formula to invest more heavily in quality equities that are underrepresented in a typical market-cap-weighted exchange-traded fund (ETF). One quality indicator in a stock is whether or not it issues a dividend.

Last weekâ??s ETF Talk introduced the concept of smart beta funds. A key reason a person might invest in a smart beta fund would be to use the fundâ??s formula to invest more heavily in quality equities that are underrepresented in a typical market-cap-weighted exchange-traded fund (ETF). One quality indicator in a stock is whether or not it issues a dividend, and there are a number of smart beta funds which focus on dividend-paying stocks, including FlexShares Quality Dividend ETF (QDF).

QDF seeks to replicate the results, before fees and expenses, of an index of high-quality dividend-paying equities. â??High-qualityâ?ť in this case is defined by fundamentals such as profitability, reliable cash flow and management performance. This fund is an income-oriented investment.

QDF has gained 6.40% in 2014, after recovering from market drops in February and August. Last year, the fund gained 33.27%. The yield is currently 2.69%. QDF typically makes an annual distribution.

Read more about this dividend-focused smart beta ETF at Eagle Daily Investor.

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Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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archive

Consider Investing in Dividend Dandies

Last week’s ETF Talk introduced the concept of smart beta funds. A key reason a person might invest in a smart beta fund would be to use the fund’s formula to invest more heavily in quality equities that are underrepresented in a typical market-cap-weighted exchange-traded fund (ETF). One quality indicator in a stock is whether or not it issues a dividend, and there are a number of smart beta funds which focus on dividend-paying stocks, including FlexShares Quality Dividend ETF (QDF).

QDF seeks to replicate the results, before fees and expenses, of an index of high-quality dividend-paying equities. “High-quality” in this case is defined by fundamentals such as profitability, reliable cash flow and management performance. This fund is an income-oriented investment.

QDF has gained 6.40% in 2014, after recovering from market drops in February and August. Last year, the fund gained 33.27%. The yield is currently 2.69%. QDF typically makes an annual distribution.

Read more about this dividend-focused smart beta ETF at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

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