| Author |
Message |
Ronald V. Overton
Guest
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 Posted:
Tue Sep 27, 2005 12:01 am Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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Tom,
Screen for Dividend Growth, Equity Income, Blue Chip Growth, and Growth
& Income.
best,
rono
TomYoung wrote:
| Quote: | Hi all:
How can one go about selecting and researching funds that invest mainly
in common stocks that pay dividends? Typical "fund screeners" don't
have this investment philosophy as a distinct "style" so you're forced
to paw through long lists of "value" funds, the typical category for
these funds. I've also tried searching for funds with Dividend or
Equity-Income in their names, but that's a slow and tedious process.
TIA.
Tom Young
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Ed
Guest
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| Posted:
Tue Sep 27, 2005 12:01 am Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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www.powershares.com
If you use a broker then these are available to you.
If you want yield try this:
http://www.etfconnect.com/select/selectfund.asp
Under "Closed-End Fund ETFs" there is a place to enter desred yield.
"TomYoung" <tgyoung@yahoo.com> wrote in message
news:1127431372.864541.82350@f14g2000cwb.googlegroups.com...
| Quote: | dumbstruck:
Thanks for the reply. I realized after my initial post that I could go
to Schwab and do a "symbol lookup" and specify a Security Type of
mutual fund, then enter "dividend" and "equity income" and get (I
think) a fairly complete list. The Business Week screener is nicer
than what I came up with since it has various metrics right there.
Thanks again.
Tom Young
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Ed
Guest
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| Posted:
Thu Sep 29, 2005 4:01 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"Elle" <elle_navorski@nospam.earthlink.net> wrote
| Quote: | I looked at the underlying shares of the index this fund will mimic, and
the
stocks look very familiar. I figure the yield will be at least 2.5%, with
of
course pretty reliable dividend growth, if history is any guide.
|
How many years of reliable dividend growth does it take to get way up to
2.5%?
On August 29, 1980 the S&P500 was yielding 5.38%, this August 29th it was
yielding 2.03%.
Is this what you call "reliable dividend growth"?
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Elle
Guest
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| Posted:
Thu Sep 29, 2005 4:01 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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Not sure you saw it in the news c. Sept. 23, but Vanguard will soon
introduce a new "dividend achievers" fund. Go to www.vanguard.com, then the
press room, and look for a Sept. 23 article on the new "Dividend Achievers
Index" fund.
"Vanguard today filed a registration statement with the Securities and
Exchange Commission (SEC) to offer a new equity index fund, VanguardŽ
Dividend Achievers Index Fund. The new fund will offer both traditional
Investor Shares and exchange-traded VIPERŽ Shares."
I looked at the underlying shares of the index this fund will mimic, and the
stocks look very familiar. I figure the yield will be at least 2.5%, with of
course pretty reliable dividend growth, if history is any guide.
I can't find a symbol for this, so I gather one cannot yet actually buy
shares in it.
See also
http://www.amex.com/?href=/atamex/news/press/sn_PowerShares_091505.htm for a
discussion of three ETFs that are also oriented towards dividends: PFM, PHJ,
PID. |
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MichaelC
Guest
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| Posted:
Thu Sep 29, 2005 9:47 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"Elle" <elle_navorski@nospam.earthlink.net> wrote in message
news:MxT_e.4485$zQ3.3368@newsread1.news.pas.earthlink.net...
| Quote: | Not sure you saw it in the news c. Sept. 23, but Vanguard will soon
introduce a new "dividend achievers" fund. Go to www.vanguard.com, then
the
press room, and look for a Sept. 23 article on the new "Dividend Achievers
Index" fund.
"Vanguard today filed a registration statement with the Securities and
Exchange Commission (SEC) to offer a new equity index fund, VanguardŽ
Dividend Achievers Index Fund. The new fund will offer both traditional
Investor Shares and exchange-traded VIPERŽ Shares."
I looked at the underlying shares of the index this fund will mimic, and
the
stocks look very familiar. I figure the yield will be at least 2.5%, with
of
course pretty reliable dividend growth, if history is any guide.
I can't find a symbol for this, so I gather one cannot yet actually buy
shares in it.
See also
http://www.amex.com/?href=/atamex/news/press/sn_PowerShares_091505.htm for
a
discussion of three ETFs that are also oriented towards dividends: PFM,
PHJ,
PID.
|
Apparently the Vanguard fund will track the same index as PEY. Not sure why
Vanguard wants to release a "me too" ETF. I'd be interested in one that
takes a "Dogs of the Dow" approach. I own PEY, but the Mergent Index is a
market cap blend, and I'd prefer one limited to large cap dividend payers.
Mike |
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MichaelC
Guest
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| Posted:
Thu Sep 29, 2005 9:51 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"Ed" <friday@fishinthe.net> wrote in message
news:11jo3rcp4d8s9c2@corp.supernews.com...
| Quote: |
"Elle" <elle_navorski@nospam.earthlink.net> wrote
I looked at the underlying shares of the index this fund will mimic, and
the
stocks look very familiar. I figure the yield will be at least 2.5%,
with
of
course pretty reliable dividend growth, if history is any guide.
How many years of reliable dividend growth does it take to get way up to
2.5%?
On August 29, 1980 the S&P500 was yielding 5.38%, this August 29th it was
yielding 2.03%.
Is this what you call "reliable dividend growth"? '
|
No. The term refers to the reliable dividend growth of the securities
selected for the portfolio. The Mergent index requires that companies
increase their dividends for each of the five previous years to be included
in the index, or something like that. In addition, stocks that have this
sort of dividend history also outperform the S*P500 in terms of price, so
you (supposedly) get the benefit of both.
Mike |
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Elle
Guest
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| Posted:
Thu Sep 29, 2005 10:14 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"MichaelC" <mikecraney@sbcglobal.net> wrote
| Quote: | "Elle" <elle_navorski@nospam.earthlink.net> wrote
Not sure you saw it in the news c. Sept. 23, but Vanguard will soon
introduce a new "dividend achievers" fund. Go to www.vanguard.com, then
the
press room, and look for a Sept. 23 article on the new "Dividend
Achievers
Index" fund.
"Vanguard today filed a registration statement with the Securities and
Exchange Commission (SEC) to offer a new equity index fund, VanguardŽ
Dividend Achievers Index Fund. The new fund will offer both traditional
Investor Shares and exchange-traded VIPERŽ Shares."
I looked at the underlying shares of the index this fund will mimic, and
the
stocks look very familiar. I figure the yield will be at least 2.5%,
with
of
course pretty reliable dividend growth, if history is any guide.
I can't find a symbol for this, so I gather one cannot yet actually buy
shares in it.
See also
http://www.amex.com/?href=/atamex/news/press/sn_PowerShares_091505.htm
for
a
discussion of three ETFs that are also oriented towards dividends: PFM,
PHJ,
PID.
Apparently the Vanguard fund will track the same index as PEY. Not sure
why
Vanguard wants to release a "me too" ETF.
|
?
The Vanguard ETF (a.k.a. VIPER) version brings money to Vanguard. PEY does
not.
| Quote: | I'd be interested in one that
takes a "Dogs of the Dow" approach.
|
I would, too, but I recognize that this would demand more work and so a
higher fee, which might counteract any advantage to this approach.
| Quote: | I own PEY, but the Mergent Index is a
market cap blend, and I'd prefer one limited to large cap dividend payers.
|
What is your concern about mid-caps with the record required by the Mergent
Index? |
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MichaelC
Guest
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| Posted:
Thu Sep 29, 2005 10:20 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"Elle" <elle_navorski@nospam.earthlink.net> wrote in message
news:ShV_e.5054$oc.126@newsread2.news.pas.earthlink.net...
| Quote: | "MichaelC" <mikecraney@sbcglobal.net> wrote
"Elle" <elle_navorski@nospam.earthlink.net> wrote
Not sure you saw it in the news c. Sept. 23, but Vanguard will soon
introduce a new "dividend achievers" fund. Go to www.vanguard.com,
then
the
press room, and look for a Sept. 23 article on the new "Dividend
Achievers
Index" fund.
"Vanguard today filed a registration statement with the Securities and
Exchange Commission (SEC) to offer a new equity index fund, VanguardŽ
Dividend Achievers Index Fund. The new fund will offer both
traditional
Investor Shares and exchange-traded VIPERŽ Shares."
I looked at the underlying shares of the index this fund will mimic,
and
the
stocks look very familiar. I figure the yield will be at least 2.5%,
with
of
course pretty reliable dividend growth, if history is any guide.
I can't find a symbol for this, so I gather one cannot yet actually
buy
shares in it.
See also
http://www.amex.com/?href=/atamex/news/press/sn_PowerShares_091505.htm
for
a
discussion of three ETFs that are also oriented towards dividends:
PFM,
PHJ,
PID.
Apparently the Vanguard fund will track the same index as PEY. Not sure
why
Vanguard wants to release a "me too" ETF.
?
The Vanguard ETF (a.k.a. VIPER) version brings money to Vanguard. PEY does
not.
I'd be interested in one that
takes a "Dogs of the Dow" approach.
I would, too, but I recognize that this would demand more work and so a
higher fee, which might counteract any advantage to this approach.
I own PEY, but the Mergent Index is a
market cap blend, and I'd prefer one limited to large cap dividend
payers.
What is your concern about mid-caps with the record required by the
Mergent
Index?
|
Nothing specific. There's just more information readily available about the
history of dividend-paying large caps than mid, so that's where my comfort
level is.
Mike |
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Elle
Guest
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| Posted:
Thu Sep 29, 2005 10:42 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"MichaelC" <mikecraney@sbcglobal.net> wrote
| Quote: | "Ed" <friday@fishinthe.net> wrote
"Elle" <elle_navorski@nospam.earthlink.net> wrote
I looked at the underlying shares of the index this fund will mimic,
and
the
stocks look very familiar. I figure the yield will be at least 2.5%,
with
of
course pretty reliable dividend growth, if history is any guide.
How many years of reliable dividend growth does it take to get way up to
2.5%?
On August 29, 1980 the S&P500 was yielding 5.38%, this August 29th it
was
yielding 2.03%.
Is this what you call "reliable dividend growth"? '
|
Good lord you are stupid, Ed. "Change in yield" and dividend growth are not
synonymous. The S&P 500's dividends (not yields; pay attention, idiot) grew
over 4% each year since 1980, starting at about $6 in 1980 and achieving
over $16 today. (My data is from Shiller through 2003, though the 2005
numbers are consistent with this statement.)
You need to study what dividend growth means. It's an extremely important
topic for retirees.
| Quote: | No. The term refers to the reliable dividend growth of the securities
selected for the portfolio. The Mergent index requires that companies
increase their dividends for each of the five previous years to be
included
in the index, or something like that.
|
Right. From of an earlier link I provided:
"Mergent, which owns and maintains the indexes underlying the three new
ETFs, developed the proprietary methodology by which it identifies Dividend
Achievers as companies that have consistently increased their regular annual
dividends to shareholders for many consecutive years (10 years or longer for
U.S. companies, five years or longer for foreign companies)."
Finance.yahoo's blerb on PEY:
"[PEY] is comprised of the fifty highest yielding companies with at least
ten years of consecutive dividend increases. The yield-weighted portfolio is
rebalanced quarterly, and reconstituted annually."
By these criteria, I would have thought the Mergent index and PEY would end
up weighted heavily towards large caps. Morningstar has PEY listed as a
mid-cap (on average?) Value ETF.
OTOH, PEY's average market cap is 4.5 billion, which is just shy of the
cutoff with which I am familiar for large caps: 5 billion. |
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Elle
Guest
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| Posted:
Thu Sep 29, 2005 10:53 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"MichaelC" <mikecraney@sbcglobal.net> wrote
E
| Quote: | What is your concern about mid-caps with the record required by the
Mergent
Index?
Nothing specific. There's just more information readily available about
the
history of dividend-paying large caps than mid, so that's where my comfort
level is.
|
I see what you mean. I have been screening in the last year or so for
dividend growth stocks with a much longer record than 10 years. Inevitably
these are large (or one level up, humongous yada, usually) cap.
OTOH, some mid and small cap companies arguably promise more potential for
principal growth. If the U.S. mid and small cap companies in the Mergent
index have a ten-year record of good dividend growth, that's good enough for
me right now. I guess as I get older, I'll want the arguably higher
reliability (lower risk) of companies with a much longer record of dividend
growth, like 30 years. Which means, as you imply, I'll hold more large caps
as I age.
It's worth investigating further. I'd be interested in seeing what the
average dividend growth of the Mergent index's constituents are, broken down
by large and mid cap. I'd also want to find out what percentage is
international, since five years is not very long for the international
positions.
PEY and similar certainly seem requisite to a good retirement portfolio, if
one believes in diversification at all. |
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Ed
Guest
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| Posted:
Thu Sep 29, 2005 11:59 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"Elle" <elle_navorski@nospam.earthlink.net> wrote
| Quote: | You need to study what dividend growth means. It's an extremely important
topic for retirees.
|
Will you be my teacher? I'll give you an apple. |
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jIM
Guest
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| Posted:
Fri Sep 30, 2005 12:01 am Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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if an individual investor invests for dividends, the best measurement
is "dividends received", not yield.
I invest in dividend paying stocks and my measue of success is how much
income is generated. This removes market performance from the
equation. My share base generally stays constant (except for splits
and dividend reinvestments), so if a company increases dividend by $.01
each year, I see this in my analysis and this is my measure, the market
may have gone upward significantly in this one year. So my yield went
down, but my dividend grew. |
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Ed
Guest
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| Posted:
Fri Sep 30, 2005 12:02 am Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"jIM" <noreplysoccer@hotmail.com> wrote
| Quote: | if an individual investor invests for dividends, the best measurement
is "dividends received", not yield.
|
If an investor is investing for dollars paid out he shouldn't be investing
in common stocks.
| Quote: | I invest in dividend paying stocks and my measue of success is how much
income is generated.
|
But at what cost? There is no success there. In 1980 the S&P500 was at
122.38 and the yield was 5.38% making the dividend $6.58. Today, the S&P500
is yielding 2.03% but the index is at 1227.68 making the dividend $24.92. I
would rather pay $122.38 and earn $6.58 any day of the week.
FWIW, for both time periods the dividend payout was not keeping up with
inflation. |
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jIM
Guest
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| Posted:
Fri Sep 30, 2005 11:10 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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being much younger, I am sure I will be learning some lessons on my own
long after your fingers prevent you from typing...
my understanding is MOST of the S&P's returns over the years have come
from "reinvested dividends" and not growth of principle. The exact
numbers escape me, though.
in the numbers you gave, there were 500 stocks making up S&P, which
paid $6.58. 25 years later, there are 500 stocks, many of them
different, which pay $24.92. Is there any evidence to suggest that
most of these stocks are the same and have grown, or the dividends are
coming from new sources?
The biggest assumption made in the post from you was the stocks were
bought at the high point (so a person had to "pay" $1227 to get the
$24.92.). If I pay the $1227 now, I would expect the amount paid in
dividends to be much greater than $24.92 every other year I hold the
investment. So evaluating this model on todays dividend payout is not
the way I evaluate the situation.
But at same point, there may be merit to what you are suggesting, but I
am sticking to my guns at age 32 my dividends will be much higher based
the general trend of increasing dividend payouts. |
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Ed
Guest
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| Posted:
Fri Sep 30, 2005 11:57 pm Post subject:
Re: Finding Funds that Invest in Dividend-Paying Stocks? |
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"jIM" <noreplysoccer@hotmail.com> wrote
| Quote: | my understanding is MOST of the S&P's returns over the years have come
from "reinvested dividends" and not growth of principle. The exact
numbers escape me, though.
|
It's not true. The S&P500 now is 1229, it was 122 in 1980. 1229/122=10.07
Dividends, $24.92/6.58=3.85
This is pretty simple stuff. Which did better?
| Quote: | in the numbers you gave, there were 500 stocks making up S&P, which
paid $6.58. 25 years later, there are 500 stocks, many of them
different, which pay $24.92. Is there any evidence to suggest that
most of these stocks are the same and have grown, or the dividends are
coming from new sources?
|
Most of the stocks are different. So will they be with the powershares
index.
| Quote: | The biggest assumption made in the post from you was the stocks were
bought at the high point (so a person had to "pay" $1227 to get the
$24.92.).
|
Don't think of it as the high point, think of it as now. Anyone considering
a fund or index will be buying it (or not) today, not in 1980. Wouldn't it
be nice.
| Quote: | If I pay the $1227 now, I would expect the amount paid in
dividends to be much greater than $24.92 every other year I hold the
investment. So evaluating this model on todays dividend payout is not
the way I evaluate the situation.
|
Just remember, at what cost?
| Quote: | But at same point, there may be merit to what you are suggesting, but I
am sticking to my guns at age 32 my dividends will be much higher based
the general trend of increasing dividend payouts.
|
I can almost gaurantee you that if the S&P500 or the powershares index you
are interested in is sill around in 30 or 40 years then the dividend payout
will be higher. But that doesn't mean anything. Remember, at what cost? |
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