Tag Archives: technology

The Highest Paying Dividend Index ETFs For Your 2017 Portfolio – Sector By Sector


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Investing can be a daunting affair for first timers or newbies and yes, even experts, but the rise of ETFs (exchange traded funds) have made the access to traditionally expensive mutual funds much easier to secure for those with smaller accounts or limited investment knowledge. How can I be invested while reducing my risk? This both a financial question and a knowledge one. We believe the answer is to own every sector through an index ETF. Indexes are passively managed, meaning they are set and left to the fundamentals of the markets and economies they serve. These index ETFs usually have much cheaper expense ratios because of their passive management making it easier for investors, beginners and experts alike, to not see their gains eaten away by inundated fees often tacked on by active managers. There is now enough research after decades of tracking to show by the likes of John Bogle, founder of Vanguard, and others in the passively managed space that index ETFs and mutual funds far outperform their actively managed counterparts.

On top of that, there is the consideration of dividend or investment income. Dividends are money paid out by companies usually on a quarterly basis from a company’s ongoing operating income. It should be noted that not all companies pay dividends. However, in ETFs because they hold a myriad of companies there is a higher probability that there will be dividends present. Dividends help households reduce the income risk of job loss. This is how many wealthy households even during recessions are able to maintain and how many pay far less in taxes. Of the three incomes (earned, passive, investment), it is earned income, or the income we get up and go to work for everyday that is taxed at the highest rate. No matter how much you earn, your dividend tax rate is never above 20 percent versus a high of almost 40 percent in earned income tax rate, so more income from dividends is always advantageous.

Our list was calculated by taking the three lowest expense ratios of ETFs by sector according to the website ETF Database’s screener. Once those were identified we looked at the dividend yield that each ETF was paying and subtracted the expense ratio. This would appear in a calculation as nominal dividend yield minus expense ratio equals real dividend yield and there would be our winner for 2017. It should be noted that dividends are not fixed and companies can reduce or increase them as they sit fit, usually based on a company’s financial health.

You can buy this list and know that you are well diversified across every sector of the economy and will be receiving dividend payments along the way. If you really want to simply things, just head over to the Motif Investing platform and buy the All-Sector ETF of ETFs Motif, which is each of these ETFs below in one security and constructed by HBCU Money. Click here to find out more.

BASIC MATERIALS

Ticker Symbol: XLB

Issuer: State Street

Real Annual Dividend Yield: 1.80%

Annual Dividend: $0.97 / share

consumer goods

Ticker Symbol: FSTA

Issuer: Fidelity

Real Annual Dividend Yield: 2.45%

Annual Dividend: $0.79 / share

financial

Ticker Symbol: FNCL

Issuer: Fidelity

Real Annual Dividend Yield: 1.73%

Annual Dividend: $0.63 / share

healthcare

Ticker Symbol: XLV

Issuer: State Street

Real Annual Dividend Yield: 1.45%

Annual Dividend: $1.11 / share

industrial goods

Ticker Symbol: XLI

Issuer: State Street

Real Annual Dividend Yield: 1.92%

Annual Dividend: $1.29 / share

services

Ticker Symbol: XLY

Issuer: State Street

Real Annual Dividend Yield: 1.56%

Annual Dividend: $1.39 / share

technology

Ticker Symbol: XLK

Issuer: State Street

Real Annual Dividend Yield: 1.61%

Annual Dividend: $0.84 / share

utilities (tIE)

Ticker Symbol: XLU

Issuer: State Street

Real Annual Dividend Yield: 3.27%

Annual Dividend: $1.66 / share

Ticker Symbol: FUTY

Issuer: Fidelity

Real Annual Dividend Yield: 3.27%

Annual Dividend: $1.06 / share

real estate

Ticker Symbol: VNQ

Issuer: Vanguard

Real Annual Dividend Yield: 4.70%

Annual Dividend: $3.98 / share

Disclaimer: This article is in no way financial or investment advice. Each person’s investment and tax needs vary. Please consult your financial adviser or CPA before making any decisions. HBCU Money, its staff, or ownership has no holdings in any of the aforementioned investments. 

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HBCU Money™ Business Book Feature – Alone Together: Why We Expect More from Technology and Less from Each Other


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Technology has become the architect of our intimacies. Online, we fall prey to the illusion of companionship, gathering thousands of Twitter and Facebook friends and confusing tweets and wall posts with authentic communication. But, as MIT technology and society specialist Sherry Turkle argues, this relentless connection leads to a new solitude. As technology ramps up, our emotional lives ramp down. Alone Together is the result of Turkle’s nearly fifteen-year exploration of our lives on the digital terrain. Based on hundreds of interviews, it describes new unsettling relationships between friends, lovers, parents, and children, and new instabilities in how we understand privacy and community, intimacy, and solitude.

Dell Buys Research In Motion – In My Dreams


William A. Foster, IV

All is for the best in the best of possible worlds.  — Voltaire

On Friday we watched the Apple (AAPL) insanity behind the IPad 3 consume the world. In New York it was reported a man flew from Brazil and waited 30 hours in line to buy his IPad 3 because they would not be released in Brazil for another 2 months. I would love for someone to name me the last time any sense of this type of excitement or euphoria surrounded a Dell (DELL) product or Research In Motion’s (RIMM) release of a Blackberry. I dare say waiting on that answer might require me to as the Snickers commercial says “Not going anywhere for awhile?”

There are so many issues for both of these companies that its honestly scary to even try and begin to name them. The people at Dell can’t possibly tell me that they have not observed how a company like Apple, once on the brink of collapse, has not only surpassed them but is now worth —- wait for it —- a market cap 18 times Dell and is now the world’s most valuable company at over half a trillion dollars. I can’t even remember the last time anyone told me they were considering buying a Dell. To say Michael Dell is no Steve Jobs is like saying Evander Holyfield is no Muhammad Ali. On the other side the Research In Motion leadership does not want to accept that its strategy and course of action simply isn’t working, flawed, misguided, and a number of other adjectives that all lead to the same place. Research In Motion made the fatal mistake believing it needed to get into the consumer/retail to compete with Apple and other smart phone makers instead of securing its place in the small business and enterprise (SBE) sector. It also failed to invest in a processor that provides a much faster interaction with the Blackberry device.

Both Dell and Research In Motion missed a great opportunity to create the cult and vertical integration in the small business and enterprise sector that Apple has created on the consumer side. A merger would really allow an exciting and global opportunity to vertically integrate the SBE sector onto the Research In Motion platform for its mobile device and Playbook tablet which could be transferred onto the Dell desktop and laptop systems.  This in turn would allow Dell to get out of the consumer and retail business itself and have both companies focus on serving the SBE sector solely and be a leader in emerging markets like China, India, and Africa who are experiencing booms in business creation. Dell could break itself of the Windows platform and the new company could then focus its R&D on the Blackberry processor which greatly needs improvement and marketing in which it could sell itself as the most secure SBE hardware company on the planet based on the Blackberry platform which could be implemented into Dell’s hardware.

These two companies could create the SBE sector version of Apple. Fully integrated with customers who want the complete ecosystem of products within it and pander for release of the next product that makes their lives easier as business people. Unfortunately, I’m not sure that the leadership at either company would be creative enough to create exciting new business products anymore than I believe they’d have enough imagination to see why they need each other and are destined to become relics in their industries. They’ll continue to try and be jack of all trades companies attempting to appease both consumer and SBE customers and masters of neither.

Disclaimer: There is no ownership of Apple, Dell, or Research In Motion by myself, my business, or my family as of this article’s publishing.

Mr. Foster is the Interim Executive Director of HBCU Endowment Foundation, sits on the board of directors at the Center for HBCU Media Advocacy, & President of AK, Inc. A former banker & financial analyst who earned his bachelor’s degree in Economics & Finance from Virginia State University as well his master’s degree in Community Development & Urban Planning from Prairie View A&M University. Publishing research on the agriculture economics of food waste as well as writing articles for other African American media outlets.