Quote:
Originally Posted by GregWeld
Wow -- I hope I'm not getting a reputation as the "stock ogre"!!
I love it when people use what they know and step up and put their hard earned money to work. That's the whole point of this thread IMHO!
Okay --- so a the price per share of this ETF -- above $60 a share -- it's only paying about 2.5%. It's growth last year (total return) mirrored the S&P 500 with 30%.
My old saying is "a rising tide floats all boats". Because pretty much everything does well (relatively) in a rising market.
I just wouldn't invest my money in much of anything that is only paying me 2.5% to own it. Coke pays more than that - McDonalds pays more than that BUT --- ALWAYS A BUT --- you got the growth (had you owned it) of the market (30% in 2013) so the 2.5% turned out to be a good return!
My problem with 2.5% is not a GOOD YEAR --- it's when we have poo years... and we're waiting for the market to come back -- THAT IS WHEN WE NEED TO GET PAID TO WAIT... because like the rising tide -- and down market takes everything down and that's when I need to be paid. With the 10 year Treasury bill hitting 3%... the 2.5% pales.
So that would be my only beef with this ETF particularly as it bills itself as
a "high dividend ETF".
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Not a stock ogre, a stock guru... Close, but different...
Marketwatch.com shows the dividend yield as 3.4% which is why I thought it was OK. If it is 2.5% then I agree, I picked another turkey, no argument. Any idea why the difference between the two yields?
I'm also curious what is considered a respectable yield. 4%?
Thanks again,
Don