Ideas for income investors
Hi MM team. Could you please comment on a couple of quarterly paying income stocks/ ETF although still getting my head around ETF’s. Thanks Ian PS loving the commentary’s
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Answer
Like all investments there is no free lunch with Income generating ETF’s, my mind quickly goes to the Dividend Harvester (HVST) that is issued by Betashares as an example of this, the fund has done 0.67% pa over the past 5 years as they focus heavily on collecting dividends i.e. at the expense of capital. That is a poor return and highlights what generally happens when income is the primary focus of the manager.
A few options below that would serve the purpose:
The S&P/ASX 300 High Yield ETF (ZYAU) selects ‘quality’ dividend paying stocks and has returned 4.01% pa since inception. Dividends are paid in March, June, September, December.
Performance is as follows:
1 Month: 2.7%
3 Month 0.4%
1 Year 25.2%
Inception 4.1%pa
Or, the iShares dividend opportunities ETF (IHD) provides exposure to 50 large Australian companies with particular focus on higher yield. They have returned 4.49% pa since inception – i.e slightly better.
Or finally, we’ll throw the Market Matters Active Income SMA into the mix. This is a managed portfolio where funds can be sent to investors in two ways. 1. A straight pass threw of all income when it is paid or 2. Regular, consistent withdrawals set automatically at time intervals i.e. quarterly. That portfolio has returned 8.00% pa since inception. For more information on this – click here
Performance is as follows:
1 Month: 2.73%
3 Month 4.20%
1 Year 36.94%
Inception 8.00%pa
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iShares ASX Dividend Opportunities ETF (IHD)
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iShares ASX Dividend Opportunities ETF (IHD)
