Displaying items by tag: dividends

Investors are preparing for significant shifts as U.S. elections and potential rate cuts approach in late 2024. While many have established their core holdings, adding targeted investments could help capture emerging market opportunities. 

Dividend-focused strategies offer both additional income and insights into a company's growth outlook; robust dividends may signal confidence, while lower payouts could suggest caution. The T. Rowe Price Dividend Growth ETF (TDVG), for example, invests in stocks with strong financials and dividend growth potential, leveraging active management to achieve higher returns. 

Over the past year, TDVG has returned 17% and averages 13% annually since its 2020 inception, using a strategy that evaluates balance sheets, cash flow, and competitive positioning. 

Finsum: Investors looking to pick up equity exposure and income this fall should be eyeing up dividend ETFs.

Investors are increasingly drawn to exchange-traded funds (ETFs) for passive income and capital growth, with demand surging recently. By June, European ETFs surpassed $2 trillion in assets under management, with a notable 88% year-on-year increase in funds raised.

Two notable ETFs for passive income are the iShares Euro Dividend UCITS ETF, which offers a 6% yield, and the L&G Quality Equity Dividends ESG Exclusions UK UCITS ETF, with a 4.6% yield. Both funds provide solid dividend income and diversification, though they have their own risks, including economic downturns in their respective regions.

ETFs offer significant advantages, such as risk management through diversification across various assets, including stocks, bonds, and commodities. While individual stocks might yield higher returns, ETFs can still be highly profitable over time.

Finsum: Now might be an important time to diversify to the UK with elections and interest rate volatility shocking U.S. and Asian markets. 

Dividend-paying ETFs offer a solid approach to generating passive income. The Schwab U.S. Dividend Equity ETF (SCHD) stands out for its robust American-made dividends and strong fundamentals. 

The ProShares S&P 500 Dividend Aristocrats ETF (NOBL) provides stability with companies that have increased payouts for 25 consecutive years. The Vanguard High Dividend Yield ETF (VYM) combines high yields with broad risk distribution, tracking the FTSE High Dividend Yield Index. 

These ETFs cater to investors seeking reliable income without the complexity of managing individual stocks. With their diverse portfolios, these funds help mitigate risk while ensuring steady dividend payouts. They represent a straightforward, efficient way to build a dependable income stream through dividends.

Finsum: Dividends are nice, but as we head into potential volatility maybe bonds are worth considering for income investors. 

Real estate investment trusts, known as REITs, are renowned for their attractive dividend yields, as they are legally obligated to distribute 90% of their post-tax earnings to shareholders. However, REITs are highly sensitive to various market factors such as interest rates, inflation, leverage, and regulatory changes, posing liquidity concerns for investors.

While dividend yield is crucial, conservative investors also consider factors like analyst ratings and liquidity when evaluating REITs. The highest-yielding REITs, according to Rick Orford, based on specific criteria, including annual dividend percentage, trading volume, number of analysts, and current analyst ratings are Vici Properties, showcasing notable revenue growth and offering a promising dividend yield of 5.71%. Starwood Property Trust, recognized as the largest commercial mortgage REIT in the US, presents a forward yield of 9.81%, notwithstanding mixed financial performance in 2023. Redwood Trust emerges as a standout contender with the highest forward yield of 11.24% and an optimistic outlook for future earnings growth, bolstered by its diversified investment portfolio.

Finsum: If interest rates have peaked REITs are poised to deliver huge returns in 2024 and 2025.

Think recruiting for succession planning is a piece of proverbial cake? Well, ha!

That’s because, to the contrary, errors can be common, according to linkedin.com. So, how do you increase your chances of sidestepping them in the recruiting process aimed at such planning? 

A few tips:

• Assess your current and future needs
• Develop a talent pool and a succession plan
• Use objective and consistent methods
• Involve multiple stakeholders and perspectives
• Monitor and evaluate your results

Now, ask yourself: if your most essential employees bolted – and bolted today – would you be up the old creek – or do you have a successor who had the knowledge, training and skills to pay dividends and fill the void?

Workplace data’s all that and more, according to hr.nih/gov. It can abet your ability to visualize your workforce, such as, for instance, the volume of employees eligible to call it a day. Well, leveraging data, you can visualize representation of the workforce, which is a great way to gain support – not to mention – interest, in succession planning.

Here’s a suggestion: in the course or workforce discussion, strategic planning – and as you break bread over your mission -- provide your leadership with a summary of workforce data, complete with the snapshot. Doing so will reinforce how important workforce planning is.