Often referred to as “Mr. Retirement,” Robert Powell is a long-time financial journalist...
Fabian's Favorites: Go-to Income ETFs
11/18/2015 9:00 am EST
Our Fabian Domestic Plan buy signal—our proprietary long-term timing indicator—allowed us to do what we’ve been wanting to do for some time, add a variety of dividend and high yield exposure to the Income Portfolio, explains Doug Fabian, editor of Successful ETF Investing.
We accomplished this with three fantastic funds that I want all Income Portfolio investors to add to their current mix.
On the dividend-paying equity front, we bought iShares Select Dividend ETF (DVY), which is our go-to fund for large-cap dividend stock exposure.
On the preferred front, we have the iShares US Preferred Stock ETF (PFF), my favorite exchange-traded fund (ETF) to get preferred-stock exposure.
Companies, primarily in the financial space, that issue high-yield preferred stocks are in this fund.
REITs are structured as pass-through securities and that means they pass through most of their earnings to shareholders. For income investors, it means a yield on IYR of 3.94%.
The mix of high-quality dividend-paying stocks in DVY, high-yield preferreds in PFF and high-yield pass-throughs in IYR reflect the kind of well-rounded income-generating securities that need to be in your portfolio if you want to generate strong yields and solid price appreciation.
More from MoneyShow.com:
Related Articles on ETFs
The Invesco S&P SmallCap 600 Pure Value ETF (RZV) tracks a fundamentally weighted index of U.S.-...
Prudential PGIM Active High Yield Bond ETF (PHYL) is a new investment that those saving for or livin...
Rather than relying solely on past performance, CFRA combines holdings-level analysis with additiona...