ETF Spotlight: PowerShares High Yield Dividend Achievers (PEY) | ETF Trends

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.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.