4 High Dividend ETFs Under $20

U.S. markets have been on cloud nine since Trump’s win on hopes of fiscal reflation. Investors cheerfully participated in the Trump rally leading the Dow Jones and the S&P 500 to offer meaty returns. The rally also took the star performers like small caps to the next level. Overall, be it the S&P 500, the Dow or the Russell 2000 all tasted triumph in the last one month having hit all-time highs.

But in this northbound journey, stock valuation got elevated with SPDR Dow Jones Industrial Average ETF Trust (DIA - Free Report) adding about 5.4% in the last one month (as of December 12, 2016), SPDR S&P 500 ETF Trust (SPY - Free Report) advancing over 4.5% and iShares Russell 2000 ETF (IWM - Free Report) tacking on about 7.5% gains.

As investors poured more and more money to make the most of the rally, they may have run out of cash. They may want to take part in the stock market party in the coming days and must be on lookout for some ETFs that are still trading below $20 but have reasons to outperform ahead.

We thus have zeroed in on some global high dividend ETFs that stayed strong in the last one month (as of December 12, 2016). We are specifically pointing out high-dividend funds as Treasury bond yields are on an uptrend lately on the Fed’s rate hike expectations this month as well as an increased inflationary outlook.

As of December 12, 2016, the yield on the benchmark 10-year Treasury note was 2.49%. So, investors must be in search of dividend ETFs that offer benchmark-beating yields. After all, high-dividend ETFs provide investors avenues to make up for capital losses, if that happens at all.

In a nutshell, a high dividend feature clubbed with cheaper prices could be an intriguing investing strategy at the current level. After all, with low-priced stocks, retail buyers would need less cash to join the market.

Also, stocks below $20 see huge profits as share price increase of a dollar adds to 5% in one’s portfolio. Also, stocks priced at $100 or above see 1% or less gain if their share prices rise by $1.

1 2
View single page >> |

more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.