ETF Spotlight: PowerShares High Yield Dividend Achievers (PEY)

ETF Spotlight on PowerShares High Yield Dividend Achievers (NYSEArca: PEY), part of a weekly series.

Assets: $120.2 million

Objective: Tracks the Dividend Achiever 50 Index

Holdings: Top holdings include Century Tel (NYSE: CTL), Altria (NYSE: MO), AT&T (NYSE: T) and Eli Lilly (NYSE: LLY)

What You Should Know

• Dividend Achievers are a unique class of dividend-paying corporations; to be designated as one, a company has to increase dividend payments for at least 10 consecutive years [Why Now May Be Time for Dividend ETFs.]
• PEY has 50 holdings
• The sector breakdown is financials (31.6%), utilities (31.3%), consumer staples (9.1%) and industrials (7%)
• Currently has a 30-day yield of 4%
• PEY has an expense ratio of 0.5%

The Latest News

• In the improving economic climate, more companies are raising their dividend payouts [Dividend ETFs That Beat Warren Buffett's Yield.]
• In the last week, 22 companies announced that they’d be increasing their dividend payments
• With paltry yields elsewhere and record-low interest rates, investors are on the hunt for yield; these ETFs are one place where they can be found lurking [Looking for Income?]
• Dividend Achievers are a good option for investors because they’ve demonstrated consistency

For past ETF Spotlights, visit our ETF Spotlight page.