The Investor Page: Exchange-Traded Funds

Exchange-Traded Funds, are index funds that trade just like stocks on major stock exchanges. Want to invest in the market quickly and cheaply? ETFs are the most practical vehicle. They help the investor focus on what is most important, choice of asset classes.
All the major stock indexes have ETFs based on them, including:

Dow Jones Industrial Average
Standard & Poor's 500 Index
Nasdaq Composite

There are ETFs for large US companies, small ones, real estate investment trusts, international stocks, bonds, and even gold. Pick an asset class that is publicly available and there is a good bet that it is represented by an ETF .

The Best ETF Site I have come across is Yahoo..

http://finance.yahoo.com/etf

The Dividend Yield

Companies that pay dividends can be good investments. especially if you hold the stock over a long period.

When you add the dividend into any price appreciation, you can enjoy not only current income, but growth too.

One way investors look for high dividend paying stocks is by using dividend yield as a guide. Dividend yield tells you what percentage the stock returns relative to its price.

You calculate dividend yield by:
Dividend Yield = annual dividend per share / stock's price per
share

You can search for companies with high dividend yields using any one of several stock screens.

http://www.dividenddetective.com

Dividend yield can lead you into a trap if you’re not careful. If you’re good at math, you noticed that the divisor of the formula for dividend yield is the stock’s price per share. If the price drops and the dividend remains the same, the dividend yield will rise.

You may buy a company with a high dividend yield, but one that is also on its way to the poor house and may not be able to afford to pay any dividend in the near future.

What do the other fundamentals look like? Dividends are paid out of cash and cash comes from earnings. Does the company have a healthy supply of cash and a consistent history of earnings and earnings growth?

Companies with a high dividend yield may be great investments if the rest of their fundamentals fall into line also.

Check out these Sites for Dividend Info

Dividend Yield for Stocks in the S&P 500

Investopedia Dividend Site

Highest Yield Dividend Stocks

The Investor Page

Forex Brokers

Exchange-Traded Funds

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