KBWD: Why Now Is The Time To Buy

Buoyed by notable levels of cash being paid back to shareholders recently, investing in dividend stocks is fully back in vogue. One dividend-focused ETF that has been left behind lately, however, is the PowerShares KBW High Dividend Yield Financial Portfolio ETF (NASDAQ:KBWD). This ETF that focused on high-yielding financial stocks has lagged virtually every index it can be compared to over the last couple of years.

 

Whether you choose to measure it against the S&P 500 (NYSEARCA:SPY), the broader financial sector (NYSEARCA:XLF) or the S&P dividend index (NYSEARCA:SDY), KBWD has fallen significantly behind most indices. This lag could be attributed to a large dose of mortgage and REIT securities in the portfolio (such as Annaly Capital (NYSE:NLY) and American Capital Agency (NASDAQ:AGNC)) or a broader flight to quality that's seen the 10-year treasury yield dip to 2.5% once again, after hitting 3.0% in the second half of 2013.

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