Vanguard High Dividend Yield ETF(NYSE:VYM): Big Dividends On Tap
And they pay that huge income stream and return 9% in gains and dividends, on average, every year. Before I get into these funds, let’s take a look at just how good this market is. In February I pointed out that earnings growth was set to remain strong for 2018, and again nearly a month ago, I pointed out that earnings estimates were going up as stocks went down. This is very rare.
When it does happen, it’s usually a blaring signal of a strong bull run. And now that companies are actually reporting earnings, it looks like I wasn’t optimistic enough. So far, nearly 20% of S&P 500 firms have reported, and 80% of those companies are reporting earnings per share (EPS) far above estimates.
Heck, in some sectors, all companies are crushing the Street’s forecasts! Tech and finance are doing well, thanks to non-stop demand for gadgets and higher interest rates, which boost bank profits. But sectors that have been beaten down so far in 2018, such as energy and real estate, are also doing better than expected.
This all means that earnings growth so far is clocking in at 18.3%, well above the 17.1% growth rate forecast at the end of March and putting us on track for what could be the best earnings record in history. Bottom line: buy signals simply don’t get much stronger than this. Now you could just run out and buy the SPDR S&P 500 ETF (SPY). 152.50 per month in income.
591.67 per month in income. The first fund I’ll show you is the Nuveen S&P 500 Buy-Write Income Fund (BXMX). As the name suggests, it invests in the S&P 500 while also selling “insurance” on those same stocks in the form of “call options” to give you a higher return and a higher income stream.
The fund yields 7.2% and has mostly matched the S&P 500’s total return over the last 3 years (note that all returns are after fees). So if SPY and BXMX are nearly identical in performance, why not just go with the ETF, Simply put, the income. Because of its bigger yield, a larger portion of the returns you get come in the form of cash paid in the form of dividends.
And unlike SPY, where your capital gains can come and go with a volatile market, you can take your cash from BXMX and put it elsewhere-or, if you prefer, straight back into BXMX. The choice is yours. Oh, and this fund also pays a 6.9% dividend yield. No one can quibble with that.
I’ve got 5 other “limitless” profit machines poised to deliver income and gains that go far beyond a medium-term earnings-season pop. These huge markdowns completely break with the historical pattern for these 5 winners, and they simply can’t last, especially when you consider that these 5 funds also hold S&P 500 names expected to rack up big earnings beats. The best thing about these 5 cash machines is that they’ve delivered market-crushing gains with much less volatility than what your average ETF investor is forced to stomach.
The topper: this fund is run by one of the top minds on Wall Street and pays a rock-solid 10.0% dividend today! This is just a taste of what these 5 income generators can give you, and I can’t wait to show you everything I have on each and every one of them. Simply click here to get the names, ticker symbols and my complete research on all 5 of these must-own funds now. 0.11%). Year-to-date, VYM has declined -2.59%, versus a -0.11% rise in the benchmark S&P 500 index during the same period.
