With the market recently looking a little wobbly,
this might be a good time to consider shifting some of your
portfolio from growth to steady income.
With that in mind, heres my new list of five
favorite high-dividend ETFs, with yields ranging from 6.6% to 11.1%.
This time, four of the five are monthly payers.
ProShares Global Listed Private Equity
(PEX)
Private equity players invest in start-ups that
havent yet gone public. ProShares holds 30 or so private equity
players; about half in the U.S and the balance in Europe and
England. The fund has returned (dividends plus share price
appreciation) 30% year-to-date, 41% over the past 12-months and
averaged 14% annually over the past three years. It pays quarterly
dividends equating to a 9.3% yield.
Global X Russell 2000 Covered Call
(RYLD):
Call options give the holder the right, but not the
obligation, to purchase a stock at a predetermined price. This fund
employs a covered call strategy that involves selling call options
on stocks that it owns. Many dividend-focused funds employ similar
strategies to generate the cash needed to pay their dividends. An
April 2019 IPO, the fund has returned 26% year-to-date and 31% over
the past 12 months. It pays monthly dividends equating to an 11.1%
yield.
Global X Alternative Income
(ALTY)
Holds a variety of high dividend paying funds and
individual stocks. The fund has returned 22% year-to-date, 27% over
12 months, and averaged 6% annually over three years. It is
currently paying a monthly dividend equating to a 6.6% yield.
Amplify High Income (YYY)
Amplify focuses on closed-end funds, which are
similar to ETFs except that instead of issuing and redeeming shares
as needed, they issue a fixed number of shares at the IPO. After
that, they trade on the open market just like stocks. However,
unlike ETFs, closed-end funds often use borrowed funds to enhance
returns. For instance, they might borrow at 1% to purchase bonds
returning 3%. Consequently, closed-end funds often outperform ETFs
focusing on the same market sector.
Amplify holds a diversified portfolio of closed-end
funds. It has returned 16% year-to-date, 22% over the past
12-months, and averaged 10% annually over three years. Amplify is
currently paying monthly dividends equating to an 8.9% dividend
yield.
Virtus InfraCap U.S. Preferred Stock
(PFFA)
Holds more than 150 preferred stocks issued by
U.S.-based corporations. Virtus has returned 22% year-to-date, 28%
over 12-months, and averaged 11% annually over three yeas. Its
currently paying a monthly dividend equating to a 7.2% yield.
Those are
my favorites. But as always, do you own due-diligence. The more you
know about your stocks and funds, the better your results.
published 11/22/21
