Apr 25
When I wrote about The Next Bubble two weeks ago, I didn’t mention any of the companies involved in solar power. Part of my reason for that is I am not really a stock picker, and randomly suggesting companies in the industry would do my readers no justice. Last week I saw an episode of Fast Money on CNBC which brought to my attention that an ETF was introduced which “tracks solar and clean energy stocks.” It is the Clayton/MAC Global Solar Index, and trades on the NYSE under the ticker symbol TAN.
The top 5 fund holdings are:
First Solar - 8.77 %
Renewable Energy Corp - 7.45 %
Q-Cells - 6.44 %
Suntech Power Holdings - 6.19 %
JA Solar Holdings - 5.25 %
I am not recommending or discouraging purchase of this ETF, but it is a good alternative to trying to pick individual stocks when you believe a particular industry is ripe for appreciation.
Joe
written by JOE
\\ tags: etf, Finance, Investing, Solar energy, solar power
Apr 21
If you have never heard of this, it’s an ETF (exchange traded fund) which trades like a stock, and is comprised of the 100 highest dividend yielding US based stocks. There are further requirements such as the company must have had positive dividend per share growth in each of the past five years. Also, the company cannot pay out more than 60% of its earnings as dividends. With these details behind us, this ETF now (as of 3/31) yields 4.29%. This is a dividend, which is taxed at either 0% (if you are in the 10 or 15% bracket) or 15% (if you are in a higher bracket). Given the current, near 1% yield, on T-bills, and just above 3% yield on CDs (fully taxable at your marginal rate) the DVY offers an interesting alternative.
If you are considering a purchase, keep in mind, this is a stock index, you may lose part of your investment. But if you have a long term view, I think you’ll find that in the next 5-10 years, you will gain a modest return, in addition to the dividend income, and if you choose to reinvest, you will benefit from the increase in shares, as well as the higher dividends as the market recovers. I am not a stock picker, and not a short term trader. When I put some funds in DVY over the last 6 months, it was with the intention to stay invested for the next ten years.
(At the close on 4/21 DVY traded at $59.17 - close on 8/11 $54.43 (.63 dividend distributed since 4/21), I will update this each month)
Joe
written by JOE
\\ tags: dividends, etf, Finance, Investing, Savings
