PEY: A Monthly Dividend ETF for Your Roth IRA Portfolio
If you are looking to add a dividend ETF into your Roth IRA Portfolio, I recommend PEY. Although the price per share of PEY fluctuates, the reliable monthly dividend payment allows you to reinvest and compound your dividends more frequently.
The value of PEY has been steadily climbing out of its low point after the economic downturn of 2008. In 2007/2008, PEY reached a maximum price per share of just over $16.00. After sinking to a minimum of around $4.00 per share in March of 2009, PEY is currently valued at $8.93 per share (as of today, 12/28/2010).
The amount of the monthly dividend payments has fluctuated along with the share price for PEY. However, dividend funds such as PEY generally contain stocks that are relatively stable, because companies that pay dividends tends to have a stable enough cash flow to afford to return profits to shareholders as dividend payments. As such, a dividend fund such as PEY should continue to make a steady comeback alongside the economy as a whole.
If you enjoy watching dividends trickle in (like I do!), then PEY will make a great addition to your Roth IRA ETF portfolio. While I would not recommend PEY as a sole investment, the addition of 10–25 percent of a dividend fund such as PEY can help your portfolio ride the economic waves on a stable monthly dividend payment.
