I mean its nice that its got a 5.84% yield but it has a .64% annual fee so a final yield of 5.2% is nice but here's my question why not just get a list of the top holdings and just buy those and save the fee?
I mean if he's seeking high yields why not buy a basket of MLP's that he will basically earn a tax free dividend on if he doesnt sell till he dies
A basket of KMP,LINE,EPD those are some of the top high yield MLP's and throw in some high yield dividend stocks like MO,PM,CVX,INTC,MSFT
All those have a yield over 3.3% and the MLP's are 5.5-8% mostly. Those yields are pretty safe and grow and you don't pay the management fee. I know the fee doesn't sound high, but man if you have a $3M nest egg which isn't too crazy for someone who say earned $100K+ and invested for many years you're looking at .64% of $3M coming in at $20k/year
A basket of solid dividend yielders would do the trick without the fee.......as for the safety of the dividend thats on you to read the balance sheets, check the payout ratios,etc but you can use dividata.com so see how long these companies have paid dividends. I own all the ones I listed and personally would never own a mutual fund or ETF but thats just me. I don't wanna pay $10K+ annually in management fees on my portfolio.
I don't really like that the top 10 holdings of that fund are all up huge this year, but then again most stocks are up big time haha.If I ever did have to buy a fund the one you listed sounds great fwiw. I also like the companies in QQQ. Congrats to your dad on retiring, im jealous!
This post was edited on 6/11 at 10:57 am