I’ve been meaning to write about the new options available for ETF investors seeking a higher dividend yield than available with the popular indices. In addition to the iShares Dow Jones U.S. Select Dividend Index Fund (DVY), yield-seeking investors have the following options:
- PFM (Yields 2.4%): PowerShares Dividend Achievers Portfolio replicates Mergent’s Broad Dividend Achievers™ Index that is made up of 313 stocks that have increased their annual dividends for the past ten years or more.
- PEY (Yields 3.9%): PowerShares High Yield Equity Dividend Achievers Portfolio comprises 50 stocks with the highest dividend yield from the Dividend Achievers™ Index.
- PHJ (Yields 1.9%): PowerShares High Growth Rate Dividend Achievers Portfolio is made up of the 1oo Dividend Achievers™ with the highest dividend growth rate over the past 10 years.
- PID (Yields 3.2%): PowerShares International Dividend Achievers Portfolio tracks international securities listed on U.S. exchanges that have increased dividends for 5 years or more. Happily, Canada is well represented here with 9 out of the 42 components.
My personal favourite is PFM, as it is fairly well diversified among various sectors (and not as highly concentrated in the financials and utilities). Canadian investors might want to ignore PID due to its high local content.
Note: Check out the latest Carnival of Personal Finance hosted by Jim at the Blueprint for Financial Prosperity. There is a good selection of interesting posts and I managed to make a submission as well.
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1 Canadian Capitalist // Mar 14, 2006 at 9:49 pm
New Dividend ETF
MarketWatch.com reported today that a new dividend ETF called the First Trust Morningstar Dividend Leaders Index fund will start trading tomorrow under the ticker symbol “FDL”. The Index is composed of 97 stocks that have a 5-year record of growing…
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