Schwab Joins the Dividend ETF Fray with SCHD
It’s been another interesting week of trading on the stock market (although stocks are much higher now), and dividend stocks continue to get a lot of attention from investors looking for the possibility of gains, but with a little lower risk — and maybe some income in the bargain.
One of the trends has been an interest in dividend ETFs. Exchange traded funds have been gaining in popularity recently due to how easy they are to trade, as well as their low costs, and instant diversity. Companies offering dividend ETFs can make big money, and Schwab wants in on that. Schwab just rolled out its high-dividend ETF, the Schwab US Dividend Equity ETF (SCHD). And it’s priced to undercut other high-dividend ETFs from Vanguard.
SCHD will use information from the Dow Jones U.S. Dividend 100 Index to populate its ETF with companies with consistency in dividend payouts, and good financial ratios.
Other Dividend News
There are plenty of dividend rumors right now. Rumors are that BP will pay a dividend for the first time since 2009. Also, there is an expectation that GlaxoSmithKline will boost its dividend to 17 pence a share, with represents a 6.3% increase for GSK shareholders. Additionally, there is also a chance that Spanish insurer Mapfre SA will boost its payout to 7.5 euro cents.
Additionally, LyondellBassell has announced a debt buyback, as well as a special dividend. LYB is hoping to boost its credit rating, and improve its financial footing. LYB is just one of many companies buying back debt right now. The hope is that the debt can then be sold at the record-low rates that are present right now.
Cantel Medical Corp. raised its semi-annual dividend to $0.07 a share from $0.06 per share for stockholders of record on January 17, 2012. For CMN shareholders, this represents a 16.7% increase. The dividend boost brings CMN up to a 0.6% yield.