This week’s Dividend PRO recommendation takes you beyond the shores of the United States into the world of high-dividend global investing through the Global X Super Dividend Exchange Traded Fund (SDIV).
This “super” dividend ETF invests in the 100 global companies that rank among the highest dividend-yielding equity securities in the world.
The underlying index is equal-weighted, meaning that no one stock accounts for a meaningful portion of total fund returns. Nearly a quarter of SDIV’s holdings are allocated to real estate, followed by allocations to communication services, financial services and consumer cyclicals. In terms of country allocations, the majority of the holdings are U.S. and Australian companies, which account for more than half of the fund’s total assets.
Importantly, SDIV also provides “instant income gratification” by paying out dividends monthly. SDIV currently boasts a juicy 30-day yield of 7.34%, on annualized basis. SDIV’s most recent distribution yield — based on an annualized calculation of its last dividend payment — is a whopping 12.15%.
Note that you must purchase the stock by May 1 to receive the next monthly dividend payment on May 10. The next set of payments after that are scheduled for June 12 and July 12.
Portfolio Update
Seadrill (SDRL) rose 0.4% this week. Generating over $2.4 billion annualized EBITDA to cover its $1.5 billion in annual dividend payments, Seadrill’s 8.5% yield is secure. Due for a bounce, SDRL remains a BUY.
Hospitality Properties Trust (HPT) ended the week 0.86% higher. This Real Estate Investment Trust is shaking off worries about its substantial hotel renovation projects this year, and continues to move higher. This 6.7% yielder remains a BUY.
Vanguard Natural Resources (VNR) jumped 2.23% this past week. Consensus earnings estimates for 2012 and 2013 have increased more than 10% over the past two months. The stock remains a BUY.
Navios Partners (NMM) rose 0.37% this past week. With a dividend yield of 10.6%, NMM remains a BUY.
Telefonica (TEF) dropped 4.86% this week. The downward movement in this stock is somewhat cushioned by its 10.5% yield. If you sold the September $17.50 calls last week, that position is now up 28.6%. Still above its stop price of $15.00, Telefonica remains a BUY.
P.S. Please join me for the Las Vegas Money Show, May 14-17, at Caesar’s Palace. To register, call 1-800/970-4355 and mention priority code 026655 or go to NicholasVardy.lasvegasmoneyshow.com. I also encourage you to sign up for my hedge fund seminar, Wednesday, May 16, 9 a.m. – 11 a.m.
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