High-Dividend ETFs, Explained

July 11, 2022

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High-Dividend ETFs, Explained

High-dividend ETFs (exchange-traded funds) are special in 2022, said Eric Balchunas, a senior ETF analyst with Bloomberg Intelligence, in a new episode of the Early Bird podcast.

Advantages: High-dividend ETFs provide investors with income, according to Balchunas, plus these ETFs have produced better returns so far in 2022 because they are overweight value stocks in energy, utilities, and financials.

Disadvantages: Balchunas said that if there’s a recession and the Federal Reserve backtracks from raising interest rates, high-dividend ETFs could be at risk because of their exposure to value stocks.

Research: Before picking a high-dividend ETF, Balchunas said that investors should research the mix of investments within each fund.

Final Thoughts: What are some of the top high-dividend ETFs of 2022? Find out by listening to a new episode of the Early Bird podcast.

Notables

Notable Earnings Today: Greenbriar Companies (NYSE: GBX), E2open Parent Holdings (NYSE: ETWO), AZZ (NYSE: AZZ), PriceSmart (Nasdaq: PSMT), VOXX International (Nasdaq: VOXX).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Bold Pickins (Honeycomb), Needfire Candle (Honeycomb), Cape Code Cellars (SMBX), Quesadilla Gorilla (SMBX), Triune Solutions (SMBX).

Notable Economic Events Today: N/A.

A Danish Bank’s Problem Foreshadows What to Watch This Week

Photo by Etienne Martin / Unsplash

Danish multinational banking and financial services company Danske Bank (OTCMKTS: DNKEY) reduced its net profit outlook on Sunday.

Details: Danske Bank now has lower expectations for trading income and income from its insurance unit due to “unfavorable financial market conditions,” namely rapidly rising interest rates. The bank also said that the Nordic fixed income markets have high volatility and lower liquidity.

Numbers: Shares of Danske Bank are down 20% in 2022.

Big Picture: Most of the major banks in the United States report their earnings in the second half of this week. It is possible that some of the U.S. banks face the same problems that Danske had.

Final Thoughts: It’s been a tough year for bank stocks. We’ll know this week if the sector can make a 2022 comeback or not.

Equity Crowdfunding Spotlight: OpenSeed

Briefly describe your business. Backed by Deepak Chopra, OpenSeed has developed meditation pods for the workplace and other commercial spaces. These pods are designed to quickly induce calm and facilitate access to elevated states of mental wellbeing.

What are the terms of the investment for your campaign? $6M pre-money valuation. $60/unit. Early bird investors invest at a $5M pre-money valuation (or $50/unit) until we hit $150K.

What makes your startup special? Why will it succeed? We have a solution for the mental health crisis. We are creating environments that induce calm and facilitate access to higher states of awareness and wellbeing. There is a growing demand for solutions that elevate mental health.

Trends to Watch

Fighting Inflation: For the Fed, Easing Too Soon Risks Repeat of Stop-and-Go 1970s (The Wall Street Journal)

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