Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

ETFs For Dividend Surprises In 2012

Tue, Dec 4, 9:15 AM ET, by Michael Johnston

Dividend investing has always drawn a large crowd for its stability and high current income focus. For the most part, companies choose to make cash distributions when experiencing excess cash or when they want to skew their debt-to-equity ratios. Recently, however, a new trend has developed in which companies have even more incentive to let go of excess cash. As the fiscal cliff approaches, businesses fear that Congress will not be able to come to a viable solution and that tax rates will go back to pre-Bush tax cut levels. This incentive to give shareholders a special dividend before the year’s end may be more appealing to firms than paying the higher tax rates themselves [for more financial ETF news and analysis subscribe to our free newsletter].

Below are firms that Goldman Sachs expect will pay out a special dividend before new taxes take effect:

Federated Investors Inc (FII)

Goldman Sachs believes this asset management company may pay a special dividend before the year end that will yield 4.5%. Currently there are two ETFs that offer exposure to FII:

  • SPDR S&P Capital Markets ETF (KCE): This ETF allocates 3.29% to Federated Investors and with an expense ratio of 0.35%, it’ one of the cheapest financial equity ETFs out there.
  • S&P Equal Weight Financial ETF (RYF): As an equally-weighted fund, this ETF allocates 1.35% to Federated Investors and all of the other companies it holds, including Moody’s and Citigroup [see also The Top 10 Cheapest And Most Expensive ETFs].

Franklin Resources Inc. (BEN)

Goldman Sachs also believes this asset management company could pay a special dividend in the near future that will yield 0.9%. Currently there are two ETFs that offer exposure to BEN, one of which also provides exposure to Federated Investors:

  • KBW Capital Markets Portfolio (KBWC): Allocating 8.44% to Franklin Resources makes it the second-largest holding in the portfolio, only behind State Street Corp.
  • SPDR S&P Capital Markets ETF (KCE): This ETF allocates 3.08% to BEN, less than it does for Federated and other financial institutions.

General Dynamics (GD)

After a closer look, Goldman Sachs believes this aerospace and defense company may pay a special dividend yielding 3.1%. Currently there are four ETFs that offer exposure to GD:

  • Dow Jones US Aerospace & Defense Index Fund (ITA): By allocating 5.89% to GD, this industrial equities ETF offers by far the most exposure to the firm.
  • Aerospace & Defense (PPA): While PPA mostly holds industrial firms like GD, which makes up 5.05% of the fund’s total assets, there is also a number of minority holdings in technology and consumer cyclical firms.
  • SPDR S&P Aerospace & Defense ETF (XAR): GD is one of XAR’s largest holding, allocating 4.58% to the company out of its 36 holdings.
  • Dynamic Industrials (PRN): Comprising of companies evaluated by fundamental growth, stock valuation, investment timeliness and risk factors, GD makes up 2.43% of the fund.

Las Vegas Sands Corp (LVS)

Goldman Sachs expects that this Vegas gaming corporation will pay out a 2.1% special dividend before 2013. Currently there are four ETFs that offer exposure to LVS:

  • Market Vectors Gaming ETF (BJK): This gaming ETF offers exposure to companies like Wynn Resorts, Sands China and MGM Resorts, but the heaviest allocation is in Vegas Sands at 8.26%.
  • Large-Cap Growth Equity Strategy Fund (RWG): With a large range of focuses from technology, consumer cyclical and healthcare, LVS is one of the largest of the 53 holdings with its 3.88% weighting.
  • Wilshire 4500 Completion ETF (WXSP): By removing the 500 stocks on the S&P from the Wilshire 5000 Index, investors gain more exposure to LVS, which at 0.95% is again the top holding.
  • Extended Market ETF (VXF): This domestic equities fund is set up much like WXSP, with a broad overview of the entire market, but with 3,040 holdings, its top allocation, LVS, only makes up 0.64% of the fund.

MasterCard Incorporated Class A (MA)

Goldman Sachs expects that this credit card giant will pay out a comparatively smaller 0.2% special dividend before the year is through. Currently there are three ETFs that offer exposure to MA:

  • Dow Jones US Financial Services Index Fund (IYG): This 12-year-old fund offers exposure to game changers like Wells Fargo, JPMorgan Chase and Visa, but with 3.49% allocation, MasterCard is in the top ten of these 112 holdings.
  • Dow Jones US Financial Sector Index Fund (IYF): Another veteran iShares financial fund, MasterCard make up 1.95% of this fund.
  • S&P Equal Weight Technology ETF (RYT): An un-managed and equally weighted fund, RYT accounts for 1.61% of the portfolio, which is heavily biased towards technology and industrial stocks.

Stryker Corporation (SYK)

This technical medical corporation is expected to pay out a 1.5% special dividend in the next month. Currently there are two ETFs that offer exposure to SYK:

  • Dow Jones US Medical Devices Index Fund (IHI): This high-flying ETF has enjoyed the biotech market upturn with a current year-to-date return of 16%. It allocates a whopping 5.91% to Stryker Corp.
  • RAFI Fundamentals Pure Mid Growth Portfolio (PXMG): Comprised of mid-growth U.S. companies ranging from REITs, industrial stocks and healthcare equities, SYK’s 1.79% allocation makes it one of the largest holdings in the fund.

Western Refinancing Inc (WNR)

Goldman Sachs believes this integrated oil and refining company may pay a special dividend before the year-end that will yield 0.9%. Currently there is one ETF that offers exposure to WNR:

  • SmallCap Earnings Fund (EES): This fundamentally weighted ETF allocates 1.09% to WNR and other top holdings like Cirrus Logic, Veeco Instruments and Revlon, which are only three of the over 900 firms included in the fund.

[For more ETF analysis, make sure to sign up for our free ETF newsletter or try a free seven day trial to ETFdb Pro]

Disclosure: No positions at time of writing.

Click here to read the original article on ETFdb.com.


SDI Glossary: "Dividend" Definition
SDI Glossary: "Earnings" Definition
SDI Glossary: "Equity" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "iShares" Definition
SDI Glossary: "Sector" Definition
SDI Glossary: "TA" Definition
This Article's Word Cloud:   Aerospace   Capital   Currently   Defense   ETFs   Federated   Fund   Goldman   Index   Investors   Jones   Markets   MasterCard   Sachs   This   allocates   allocation   also   before   believes   cash   companies   company   dividend   exposure   financial   firms   free   from   fund   holdings   industrial   largest   like   makes   more   offer   offers   only   special   stocks   technology   that   there   this   weighted   which   will   with   year

| More

VGSH Crosses Below Key Moving Average Level
Wed, Aug 20, 4:14 PM ET, by ETF Channel

In trading on Wednesday, shares of the Vanguard Short-Term Government Bond ETF (VGSH) crossed below ...

ISHG Crowded With Sellers
Wed, Aug 20, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the iShares 1-3 Year International Treasury Bond ETF (ISHG) ...

DRV Crowded With Sellers
Wed, Aug 20, 3:54 PM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Real Estate Bear 3x Shares ETF (DRV) ...

PPLT Crowded With Sellers
Wed, Aug 20, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the ETFS Physical Platinum Shares ETF (PPLT) entered into ...

Japanese Yen Trust (FXY) Enters Oversold Territory
Wed, Aug 20, 11:14 AM ET, by ETF Channel

In trading on Wednesday, shares of the Japanese Yen Trust ETF (FXY) entered into oversold ...

iShares Core S&P Total U.S. Stock Market ETF Experiences Big Outflow
Wed, Aug 20, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: ITOT, UPS, SBUX, SPG Exchange traded funds (ETFs) trade just ...

VAW, PX, ECL, PPG: Large Outflows Detected at ETF
Wed, Aug 20, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: VAW, PX, ECL, PPG Exchange traded funds (ETFs) trade just ...

IWX, EMC, MS, MET: Large Outflows Detected at ETF
Wed, Aug 20, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: IWX, EMC, MS, MET Exchange traded funds (ETFs) trade just ...

PIZ, CFR, DOL, CPG: Large Outflows Detected at ETF
Wed, Aug 20, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: PIZ, CFR, DOL, CPG Exchange traded funds (ETFs) trade just ...

FEP, NXPI, ICLR, AER: Large Outflows Detected at ETF
Wed, Aug 20, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: FEP, NXPI, ICLR, AER Exchange traded funds (ETFs) trade just ...

Why Genuine Parts is a Top 25 SAFE Dividend Stock (GPC)
Wed, Aug 20, 9:14 AM ET, by ETF Channel

Genuine Parts Co. (GPC) has been named to the Dividend Channel ''S.A.F.E. ...

UDN Crosses Critical Technical Indicator
Tue, Aug 19, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares DB US Dollar Index Bearish Fund ETF ...

Carmax Takes Over #109 Spot From Pitney Bowes
Tue, Aug 19, 1:44 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

Technology Select Sector SPDR Fund Experiences Big Inflow
Tue, Aug 19, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: XLK, AAPL, MSFT, GOOGL Exchange traded funds (ETFs) trade just ...

VUG, GOOG, FB, AXP: ETF Inflow Alert
Tue, Aug 19, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VUG, GOOG, FB, AXP Exchange traded funds (ETFs) trade just ...

EWP: Large Inflows Detected at ETF
Tue, Aug 19, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EWP Exchange traded funds (ETFs) trade just like stocks, but ...

JNK: Large Inflows Detected at ETF
Tue, Aug 19, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: JNK Exchange traded funds (ETFs) trade just like stocks, but ...

Vanguard Value ETF -- Insider Buying Index Registering 12.8%
Tue, Aug 19, 9:44 AM ET, by ETF Channel

A look at the weighted underlying holdings of the Vanguard Value ETF (VTV) shows an ...

13.9% of FDL Holdings Seeing Recent Insider Buys
Tue, Aug 19, 9:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the First Trust Morningstar Dividend Leaders Index ...

MMM a Top Ranked SAFE Dividend Stock With 2.4% Yield (MMM)
Tue, Aug 19, 8:14 AM ET, by ETF Channel

3M Co (MMM) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a ...

Norfolk Southern a Top Socially Responsible Dividend Stock With 2.2% Yield (NSC)
Tue, Aug 19, 8:14 AM ET, by ETF Channel

Norfolk Southern Corp. (NSC) has been named a Top Socially Responsible Dividend Stock by Dividend ...

TNA Crosses Above Key Moving Average Level
Mon, Aug 18, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Daily Small Cap Bull 3x Shares ETF (TNA) ...

FIW Crosses Above Key Moving Average Level
Mon, Aug 18, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the First Trust ISE Water Index Fund ETF (FIW) ...

Western Digital Takes Over #60 Spot From Monsanto
Mon, Aug 18, 12:24 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

IVE, XOM, CVX, BAC: Large Inflows Detected at ETF
Mon, Aug 18, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IVE, XOM, CVX, BAC Exchange traded funds (ETFs) trade just ...

EWW: Large Inflows Detected at ETF
Mon, Aug 18, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: EWW Exchange traded funds (ETFs) trade just like stocks, but ...

BSJG: Large Outflows Detected at ETF
Mon, Aug 18, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: BSJG Exchange traded funds (ETFs) trade just like stocks, but ...

IYE, SLB, COP, EOG: Large Outflows Detected at ETF
Mon, Aug 18, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IYE, SLB, COP, EOG Exchange traded funds (ETFs) trade just ...

10.3% of XBI Holdings Seeing Recent Insider Buys
Mon, Aug 18, 10:34 AM ET, by ETF Channel

A look at the weighted underlying holdings of the SPDR S&P Biotech ETF (XBI) shows ...

Sonoco Products a Top Ranked SAFE Dividend Stock With 3.2% Yield (SON)
Mon, Aug 18, 8:24 AM ET, by ETF Channel

Sonoco Products Co. (SON) has been named to the Dividend Channel ''S.A.F.E. ...

Daily 7-10 Year Treasury Bear 3x Shares (TYO) Enters Oversold Territory
Fri, Aug 15, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the Daily 7-10 Year Treasury Bear 3x Shares ETF ...

Shares of PST Now Oversold
Fri, Aug 15, 3:54 PM ET, by ETF Channel

In trading on Friday, shares of the Proshares UltraShort 7-10 Year Treasury ETF (PST) entered ...

NextEra Energy Takes Over #91 Spot From Cummins
Fri, Aug 15, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

iShares 1-3 Year Treasury Bond ETF Experiences Big Inflow
Fri, Aug 15, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: SHY Exchange traded funds (ETFs) trade just like stocks, but ...

IJT, SLCA, PRAA, SYNA: Large Inflows Detected at ETF
Fri, Aug 15, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IJT, SLCA, PRAA, SYNA Exchange traded funds (ETFs) trade just ...

IWR, CCI, AMAT, AON: ETF Inflow Alert
Fri, Aug 15, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: IWR, CCI, AMAT, AON Exchange traded funds (ETFs) trade just ...

PowerShares DB Agriculture Fund Experiences Big Outflow
Fri, Aug 15, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: DBA Exchange traded funds (ETFs) trade just like stocks, but ...

SIVR Crosses Critical Technical Indicator
Fri, Aug 15, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the ETFS Physical Silver Shares ETF (SIVR) entered into ...

HDV, LLY, SO, CTL: Large Inflows Detected at ETF
Fri, Aug 15, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: HDV, LLY, SO, CTL Exchange traded funds (ETFs) trade just ...

AGQ Crowded With Sellers
Fri, Aug 15, 11:14 AM ET, by ETF Channel

In trading on Friday, shares of the Proshares Ultra Silver ETF (AGQ) entered into oversold ...

ACE Named Top 25 SAFE Dividend Stock Increasing Payments For Decades
Fri, Aug 15, 8:14 AM ET, by ETF Channel

ACE, Ltd. (ACE) has been named to the Dividend Channel ''S.A.F.E. ...

ACE Named A Top Socially Responsible Dividend Stock
Fri, Aug 15, 8:14 AM ET, by ETF Channel

ACE, Ltd. (ACE) has been named a Top Socially Responsible Dividend Stock by Dividend Channel, ...

Why Occidental Petroleum is a Top 25 Dividend Giant (OXY)
Fri, Aug 15, 8:14 AM ET, by ETF Channel

Occidental Petroleum Corp (OXY) has been named as a Top 25 ''Dividend Giant'' by ETF ...

ULE Crowded With Sellers
Thu, Aug 14, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the Proshares Ultra Euro ETF (ULE) entered into oversold ...

SCO Makes Bullish Cross Above Critical Moving Average
Thu, Aug 14, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the Proshares UltraShort Bloomberg Crude Oil ETF (SCO) crossed ...

PowerShares DB Oil Fund (DBO) Shares Cross Below 200 DMA
Thu, Aug 14, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the PowerShares DB Oil Fund ETF (DBO) crossed below ...

Perrigo Company Achieves #102 Analyst Rank, Surpassing Sempra Energy
Thu, Aug 14, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

TIP: ETF Inflow Alert
Thu, Aug 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: TIP Exchange traded funds (ETFs) trade just like stocks, but ...

TBT: ETF Inflow Alert
Thu, Aug 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: TBT Exchange traded funds (ETFs) trade just like stocks, but ...

VO, DLPH, WDC, MYL: Large Inflows Detected at ETF
Thu, Aug 14, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VO, DLPH, WDC, MYL Exchange traded funds (ETFs) trade just ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

ETFs For Dividend Surprises In 2012 | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.