Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
FYI: (Click On Article Title At Top Of Google Search) It has been an electric year for dividend exchange-traded funds—many have outperformed the Standard & Poor’s 500 index in the past 12 months. These once-staid income tools have looked more like growth funds, helped by their large stake in hot utility stocks Regards, Ted https://www.google.com/#q=Utility+Stocks+Could+Shock+Dividend+Investors+wsj
Better to own particular stocks? Yields are thin, yes: PNM 2.44%, Duke Energy 3.86, PG&E 2.9% AEP 3.19% Southern Company 4.09%. ...PNM has been waiting forever for a rate hike from the regulatory agency. August, sometime, is the next hoped-for approval day. This is all about a 2nd try, too. The rate board panned the first request, said it was just incomplete and not tight and precise enough.
I wonder who is actually buying these funds. It can't be yield chasers because there's little yield to be had. It can't be income chasers because without yield there is no income. Granted both income and yield are better than owning a bond fund these days, or so it seems, but those looking for income usually don't feel comfortable getting it from riskier(?) stocks. Maybe the buyers are coming from ex-energy investors looking for a new home or those simply pouring money into what seems to be working at this time.
Comments