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Dividend is among the investing themes that should be under radar amid huge uncertainty. Wall Street has remained steady despite the rising cases of the delta variant of COVID. But it is yet to regain its mojo fully though key U.S. indexes like the Nasdaq and the S&P 500 hit highs recently.
Overall, ups and downs in oil prices and uneven global growth momentum might keep the high-risk securities on the edge this year. A still-high-unemployment rate kept the Fed from tightening policies despite inflation risks. U.S. benchmark treasury yields remained at considerable low levels. The 10-year U.S. treasury yields are currently hovering around the 1.37% level.
Hunt for Dividend Yield?
No wonder, such a low treasury yield would spur investors to rush to dividend destinations. This is especially true given that dividend hikes are back. We all know that dividend payments were mostly stalled in the year 2020 as the coronavirus-led corporate cash crunch led to the announcement of dividend cuts.
In April 2020, two dozen companies in the S&P 500 cut or suspended their dividends. However, things are changing this year. In April 2021, about 33 company in the S&P 500 announced dividend hikes. No companies announced a cut or suspension, per a CNBC article (read: Dividend Hikes Are Back: Buy These ETFs).
Against this backdrop, below we highlight a few ETFs that yield more than 5% and have added decent gains this year.
ETFs in Focus
Nationwide Risk-Managed Income ETF (NUSI - Free Report) – 7.49% Yield; Up 7.38% YTD
This ETF is active and does not track a benchmark. Information Technology (48.2%), Communication Services (19.2%) and Consumer Discretionary (18.3%) are the top three sectors of the fund. It charges 68 bps in fees.
The underlying KBW Nasdaq Premium Yield Equity REIT Index is a dividend-weighted index seeking to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States. The fund charges 35 bps in fees.
Global X SuperDividend ETF (SDIV - Free Report) – 7.13% Yield; Up 11.84% YTD
The underlying Solactive Global SuperDividend Index tracks the performance of 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world.The index provider applies certain dividend stability filters. Real Estate (43.8%), Financials (11.3%) and Energy (10.8%) are the top three sectors. It charges 59 bps in fees.
Invesco KBW High Dividend Yield Financial ETF (KBWD - Free Report) – 6.93% Yield; Up 29.3% YTD
The KBW Nasdaq Financial Sector Dividend Yield Index is a dividend-yield-weighted index seeking to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. Its expense ratio is 1.24%.
Global X SuperDividend Alternatives ETF (ALTY - Free Report) – 6.91% Yield; Up 20.2% YTD
The underlying Indxx SuperDividend Alternatives Index tracks the performance of the highest dividend-yielding securities in each category of alternative investments, as defined by the Index Sponsor. REITs (21.05%), BDCs and Private Equity (20.14%), MLPs (16.45%), Covered Call Strategies (12.84%) and Infrastructure (10.70%) are the top five sectors of the fund. Its expense ratio is 2.82%.
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5 Dividend ETFs Yielding 5% or More
Dividend is among the investing themes that should be under radar amid huge uncertainty. Wall Street has remained steady despite the rising cases of the delta variant of COVID. But it is yet to regain its mojo fully though key U.S. indexes like the Nasdaq and the S&P 500 hit highs recently.
Overall, ups and downs in oil prices and uneven global growth momentum might keep the high-risk securities on the edge this year. A still-high-unemployment rate kept the Fed from tightening policies despite inflation risks. U.S. benchmark treasury yields remained at considerable low levels. The 10-year U.S. treasury yields are currently hovering around the 1.37% level.
Hunt for Dividend Yield?
No wonder, such a low treasury yield would spur investors to rush to dividend destinations. This is especially true given that dividend hikes are back. We all know that dividend payments were mostly stalled in the year 2020 as the coronavirus-led corporate cash crunch led to the announcement of dividend cuts.
In April 2020, two dozen companies in the S&P 500 cut or suspended their dividends. However, things are changing this year. In April 2021, about 33 company in the S&P 500 announced dividend hikes. No companies announced a cut or suspension, per a CNBC article (read: Dividend Hikes Are Back: Buy These ETFs).
Against this backdrop, below we highlight a few ETFs that yield more than 5% and have added decent gains this year.
ETFs in Focus
Nationwide Risk-Managed Income ETF (NUSI - Free Report) – 7.49% Yield; Up 7.38% YTD
This ETF is active and does not track a benchmark. Information Technology (48.2%), Communication Services (19.2%) and Consumer Discretionary (18.3%) are the top three sectors of the fund. It charges 68 bps in fees.
Invesco KBW Premium Yield Equity REIT ETF (KBWY - Free Report) – 7.22% Yield; Up 16.93% YTD
The underlying KBW Nasdaq Premium Yield Equity REIT Index is a dividend-weighted index seeking to reflect the performance of approximately 24 to 40 small- and mid-cap equity REITs in the United States. The fund charges 35 bps in fees.
Global X SuperDividend ETF (SDIV - Free Report) – 7.13% Yield; Up 11.84% YTD
The underlying Solactive Global SuperDividend Index tracks the performance of 100 equally weighted companies that rank among the highest dividend yielding equity securities in the world.The index provider applies certain dividend stability filters. Real Estate (43.8%), Financials (11.3%) and Energy (10.8%) are the top three sectors. It charges 59 bps in fees.
Invesco KBW High Dividend Yield Financial ETF (KBWD - Free Report) – 6.93% Yield; Up 29.3% YTD
The KBW Nasdaq Financial Sector Dividend Yield Index is a dividend-yield-weighted index seeking to reflect the performance of approximately 24 to 40 publicly listed financial companies engaged in the business of providing financial services and products, including banking, insurance and diversified financial services, in the United States. Its expense ratio is 1.24%.
Global X SuperDividend Alternatives ETF (ALTY - Free Report) – 6.91% Yield; Up 20.2% YTD
The underlying Indxx SuperDividend Alternatives Index tracks the performance of the highest dividend-yielding securities in each category of alternative investments, as defined by the Index Sponsor. REITs (21.05%), BDCs and Private Equity (20.14%), MLPs (16.45%), Covered Call Strategies (12.84%) and Infrastructure (10.70%) are the top five sectors of the fund. Its expense ratio is 2.82%.