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What High Yield Dividend Investors Need To Do Right Now

Date post: 30-Jul-2015
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Welcome to Dividend Stocks Research Your premier site for

Rankings and Reviews of the best dividends stocks around. For more

info on dividend stocks visit our website

DividendStocksResearch.com

Why Dividend Investors Dodged The Worst Of An

Ugly Market

Can you believe this wild ride?

The Wall Street Journal described trading on Wednesday, October 15th

as, “frenzied.”

Treasury yields have slumped to their lowest level in 16 months.

Crude oil futures have slid back to 2012 prices. Professional traders

are skittish, and Main Street investors can’t seem to shake scary

memories of 2008 and 2000.

Pull up any chart you want and you’ll see the market has turned

lower…

What does all this mean for dividend investors?

Fortunately, it means some very real shelter from the storm, and no

shortage of opportunities.History repeats itself… and we’re seeing it again… When things get rough, dividend stocks historically

hold up better than the market as a whole.

All you have to do is compare the performance of the Dividend

Aristocrats, as tracked by the SPDR S&P Dividend ETF (SDY), with the

S&P 500 (SPY).

And we’re seeing it again today.

Between September 2nd and October 15th, the Aristocrats were off 5.1%, and

the broader S&P 500 was off 7.1%.

Nobody likes taking a 5.1% haircut.

However, it means the high dividend yielding stocks helped protect your

portfolio…

So, let’s put this in perspective and look at what’s been happening.

Google (GOOG) off 8.2%, Amazon (AMZN) off 10.6%, and Apple

(AAPL) off 10.3%.

And not to cause undue pain for investors who would rather chase a

flashy IPO than a dull dividend stock...

Alibaba (BABA) It began trading September 19th after an IPO. In less

than a month, it’s 14.1% off its opening day high.

Check out Alibaba (BABA)

While dividend investors have been hit hard… our wounds are superficial

compared to what we see elsewhere!

Look, you’re probably nervous about the market… this is just a natural

correction.

Do NOT SELL your quality dividend stocks… hang onto them.

And if you have cash in your portfolio ready for a special

situation, Now’s the time to take action! Here are two dividend ETFs

you should look at.

What Cautious Dividend Investors Need To Do Today:

Reload

If you’ve been on the sidelines, waiting for what you correctly

thought was an overheated market to cool down, take a close look at the ETF that gives you America’s strongest dividend stocks... the

Aristocrats.

You can invest in the Aristocrats by picking up shares of the ETF that

tracks them, the SPDR S&P Dividend ETF (SDY).

The Aristocrats definitely add some class to your portfolio. The

Aristocrats are solid, blue chip S&P 500 companies that have increased their dividend payouts for 25 years

in a row.

SPDR S&P Dividend ETF (SDY)The P/E ratio for the ETF is 18x,

which comes in just a little higher than the overall S&P 500, which is

17x.

(SDY)Dividend Yield: 2.46%Annual Payout: $1.80

Payout Ratio: NM

SPDR S&P Dividend ETF (SDY)

However, if you’re looking for something a little more aggressive…

What More Aggressive High Yield Dividend Investors Need

To Do Today: Go Global

WisdomTree Emerging Markets High-Yielding Equity Fund (DEM)

For high yield dividend investors, The WisdomTree Emerging Markets

High-Yielding Equity Fund (DEM) is a great way to get broad exposure to dividend paying stocks in emerging

markets.

WisdomTree Emerging Markets High-Yielding Equity Fund (DEM)

Even though it invests in large cap, value stocks, the ETF has taken a

beating. Russian oil companies and Chinese banks, which are

concentrated in the fund, aren’t exactly lighting it up right now.

WisdomTree Emerging Markets High-Yielding Equity Fund (DEM)

But the ETF pays a 10.85% yield , the P/E ratio is an attractive 8.0x, and

remember, the ETF’s diversification, its broad holdings, can help soften the

blow of market downdrafts... like we’ve all been hit with.

(DEM)Dividend Yield: 10.85%Annual Payout: $5.05

Payout Ratio: NM

WisdomTree Emerging Markets High-Yielding Equity Fund (DEM)


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