3 Global Dividend ETFs Under $20 To Watch
Zacks Investment Research | Apr 21, 2015 12:45AM ET
Every investor’s ultimate goal is to reap returns. They get more enthusiastic when they get to gain from a cheap security, i.e., security with a low share price and a low price-to earnings ratio. A low share price often helps investors to buy a fatter lot than occupying a slimmer set of high-ticket securities.
Also, in case of cheap security, a rise by just a few pennies per share can shape up into huge percentage profits. These securities are certainly highly vulnerable. Not hailing from the blue-chip category, these often carry risks associated with low market cap, and high trading costs on account of a wide bid/ask spread. But ‘no risk, no reward’.
Still investors, about to dip their toe into this risky world, can check for some investing ideas trending high in the present market. This could minimize the risk of one’s portfolio to some extent. One such hot field at present is dividend investing.
The wave of easy money polices across the globe, be it Europe or Asia, have brightened the appeal for dividend investing lately. Back home, a depressed inflationary backdrop and a still-wavering labor market held the Fed back from being sanguine over the rate hiking timeline. Both these kept bond yields at check globally.
As a result, investors looking for steady current income shifted their focus to high dividend stocks. These cash payouts can safeguard one’s portfolio in bear market movements and ensure steady income in a low yield backdrop.
Thus, we recommend investors to opt for dividend ETFs, preferably international, if they are to go for ETFs under $20. Accommodative policies will shore up both yield and capital gains of the international dividend picks. Though choices are scarce in this genre, we highlight three options from this subset. Investors can keep a watch on them in the days to come (see Original post
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