Email of the day (1)
Comment of the Day

July 30 2012

Commentary by David Fuller

Email of the day (1)

On Autonomies and Dividend Aristocrats:
"I have been a subscriber since I heard you speak at Alex Seagle's conference in Vermont. I have really enjoyed the daily readings and one of my employees attended the workshop with Eoin in New York. He loved it! My question is do you know of any ETF's or funds (2nd choice) that invest in autonomies? Also, what percentage of a portfolio would you invest in the autonomies? One final question, could you answer the same questions about dividend aristocrats...Thanks so much,"

David Fuller's view Thanks for your feedback and questions which are certain to be of interest to other subscribers.

I am not yet aware of an ETF or fund that would invest in US and/or global Autonomies, so you will have to cherry pick in this sector, perhaps overweighting companies which cater to the rapidly growing global middleclass.

For US Dividend Aristocrats, there is the SPDR Dividend ETF (SDY US). Here is its Bloomberg Description page and also its Top-ten holdings. It currently yields 3.16%.

There is also the iShares DJ Select Dividend Index (DVY US), Bloomberg Description and Top-10 holdings. It yields 3.72%.

Fullermoney continues to favour an overweight in Autonomies and Dividend Aristocrats. Autonomies need to be monitored more closely as they are generally more volatile, although some of them are also Dividend Aristocrats.

Lastly, you may have met Tom Cameron at the Contrary Opinion Forum. A tall, distinguished and charming gentleman who founded Dividend Growth Advisors in Ridgeland, South Carolina. He is an expert on this subject.

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