Wednesday, 11 March 2015

How Will Rate Hikes Treat Your Dividend ETF?

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.



With interest rates at record lows in the past several years, ETFs that invest in dividend-paying stocks have been a popular income alternative for some investors. But will they remain advantageous now that the Federal Reserve is seriously considering hiking rates? It depends on the specific investment objectives of each fund, according to Michael Rawson, research analyst at Morningstar Inc. "When you look at stocks with a high dividend payout,

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