A high dividend yield can be a sign of a strong, stable company and investment. However a large dividend yield may also be a signal of trouble and a hint that the company’s dividend may be unsustainable and cut in the near future.
Thankfully for investors, there are several quick checks you can do based on a company’s financial statements to see how sustainable that dividend really is. [continue reading…]
In a recent article on Scottrade’s new Flexible Dividend Reinvestment Program (FRIP) – found here – we talked about how important security selection is in order to reap the benefits of a dividend reinvestment program, particularly for new investors. Today, we highlight some funds that will help new investors make the most out of dividend reinvestment programs.
After Scottrade got out of the commission free / low expense ratio ETF game last August, investors didn’t have much reason to choose Scottrade over other brokers. Last week Scottrade announced a new “Flexible Dividend Reinvestment Program” to get back in the game. Does this new “FRIP” feature put Scottrade back on the radar for new investors looking for a broker?
Today we take a close look at some of the most popular dividend ETFs to see if they are right for you.
