I just dont think theyre worth it. Sure, you get to minimize risk because of keeping, essentially very low risk investment... but the upside is so minimal.
For example, If I invested in the ETF $VYM (high div. yielding vanguard stock), YTD the stock went from ~76 dollars per, to around ~78 per... so in 6 months, you gained 2 dollars in value for each share you have (shit). But thats not the main focus, it's the money you get from dividends, alright lets check that out. It yields $2.31 per share you buy, ANNUALLY. (am i reading this right).
So okay lets pretend the best case scenario, the stock goes from ~76 to ~82 dollars (best case). Rises over the YTD gain into a little bit more. Then it pays 2.31 per share. Any normal investor would have, what, 1k in it as part of their portfolio? Let's be generous and give it 5k. So 5k/the 76 it costs = ~65.
65x2.31 = 151 dollars at the end of the year. You probably dont want to sell the stock because its suppose to be kept for long term. So you just made 151 dollars in the stock. Nice. Even if the dividend yield increases much higher, I Just dont see a point in investing in them unless you have a lot of money to buy a lot of shares.
Just seems much more worth it to invest in a little bit riskier stock and get a way bigger upside. In the end, it goes up anyway, right?
THOUGHTS? (feel free to correct me if any of this is wrong). (same theory on bonds/treasury ETFs/Funds) ... not worth it. (Unless you think were in a market crashing zone soon)
Submitted June 30, 2017 at 08:51AM by critaa http://ift.tt/2s8RWQs
