Weekly dividend payment ETFs

[forest172]

Been looking into the ETFs that pay a weekly dividend. Anybody got any views on these? Ticker WEEK the one in the video

Could be good for somebody when they hit retirement and they want a weekly payment to live off their portfolio. WEEK pays 8.09% on a large fund that could be a nice payment each week

you tube video https://www.youtube.com/watch?v=fy4UZcJDjmM

[Derek Chevalier]

forest172 said:

Been looking into the ETFs that pay a weekly dividend. Anybody got any views on these? Ticker WEEK the one in the video

Could be good for somebody when they hit retirement and they want a weekly payment to live off their portfolio. WEEK pays 8.09% on a large fund that could be a nice payment each week

you tube video https://www.youtube.com/watch?v=fy4UZcJDjmM

Ben Felix covers covered calls

https://www.youtube.com/watch?v=K3sYY3T7V8k

[Felicity28]

Unsure if this covers what you need, but this guy does regular videos breaking down all his investement dividend payments.

https://youtu.be/pvtW57Mr7d8?si=ylFyK5CQimgOK34T

They're often on a quarterley basis, sometimes monthly and maybe other intervals too

[Panamax]

Roll up, roll up, step right this way.

If it's being flogged on the internet and looks too good to be true....

[Derek Chevalier]

Felicity28 said:

Unsure if this covers what you need

Probably not

Episode 201: The Relevance of Dividend Irrelevance

https://rationalreminder.ca/podcast/201

[Felicity28]

Derek Chevalier said:

Felicity28 said:

Unsure if this covers what you need

Probably not

Episode 201: The Relevance of Dividend Irrelevance

https://rationalreminder.ca/podcast/201

Ah thank you... I was rushing and only remembered this video as I watch a lot of Financial YouTube channel and that particular creator focuses unusually on divident payouts. Often very interesting and he rakes in a good £3k+ each month usually

[forest172]

interesting I`ll watch some more videos. Thought it was a good idea if you had a £1m portfolio £1500 a week dumping into your cash account not to be sniffed at

[NowWatchThisDrive]

Ultimately it's just an expensive behavioural comfort blanket of sorts though as you could just own a bog standard global tracker (for a lot less than 0.5%) and manufacture your own 8% or whatever income per year by selling shares/units.

[JoshSm]

Panamax said:

Roll up, roll up, step right this way.

If it's being flogged on the internet and looks too good to be true....

Does have that smell to it doesn't it?

[WayOutWest]

I think there can be a place for such a product (e.g. covered call based to juice income out of an equity index) paying out quarterly or monthly, as a limited part of an income portfolio, but weekly payouts are a ridiculous gimmick.

[Derek Chevalier]

WayOutWest said:

I think there can be a place for such a product (e.g. covered call based to juice income out of an equity index) paying out quarterly or monthly, as a limited part of an income portfolio

Certainly if you are selling the product, but for the retiree, I'd suggest a total-return approach; taking periodic withdrawals from a low-cost, globally diversified portfolio is likely better for most.

[wisbech]

forest172 said:

Been looking into the ETFs that pay a weekly dividend. Anybody got any views on these? Ticker WEEK the one in the video

Could be good for somebody when they hit retirement and they want a weekly payment to live off their portfolio. WEEK pays 8.09% on a large fund that could be a nice payment each week

you tube video https://www.youtube.com/watch?v=fy4UZcJDjmM

What is the advantage of a weekly payment vs a semi-annual/ quarterly payment? Are you unable to budget?

It is a tiny fund with relatively high expenses.

[trickywoo]

forest172 said:

interesting I`ll watch some more videos. Thought it was a good idea if you had a £1m portfolio £1500 a week dumping into your cash account not to be sniffed at

7.8% dividend etf?

[Joseph Ducreux]

I have a nominal £1k in the "Almost Daily Dividends" pie on T212 - it's the most copied dividend pie on the platform and, as the name suggests - returns a few pence in dividends almost every day.

Obviously higher invested amounts will net higher returns, but it's a bit of fun at the minute.

This is the guy who runs it: https://www.youtube.com/@TheDividendExperiment

[thekingisdead]

NowWatchThisDrive said:

Ultimately it's just an expensive behavioural comfort blanket of sorts though as you could just own a bog standard global tracker (for a lot less than 0.5%) and manufacture your own 8% or whatever income per year by selling shares/units.

+1

Why anyone needs weekly income is beyond me. By retirement people should be well used to receiving money Monthly and making a budget accordingly.
This isnt America where people a paid every 2weeks FFS.

[modeller]

The advantage of dividends is they keep paying in a downturn. Having to sell when the market's down 30% would soon justify a higher OTF.

[xeny]

modeller said:

The advantage of dividends is they keep paying in a downturn. Having to sell when the market's down 30% would soon justify a higher OTF.

Be careful with that assumption. Quite a few dividend stocks paid much reduced dividends in 2020 to give a recent example.

[Derek Chevalier]

modeller said:

The advantage of dividends is they keep paying in a downturn. Having to sell when the market's down 30% would soon justify a higher OTF.

Not necessarily

https://www.exchange-data.com/uk-companies-slashed...

There is also concentration risk/factor loadings to consider.

https://www.vanguard.co.uk/content/dam/intl/europe...


https://finalytiq.co.uk/natural-yield-totally-bonk...

" And it’s crucial that any retirement income strategy works over a very long period and under various market conditions, including the extreme ones!"

[NowWatchThisDrive]

xeny said:

modeller said:

The advantage of dividends is they keep paying in a downturn. Having to sell when the market's down 30% would soon justify a higher OTF.

Be careful with that assumption. Quite a few dividend stocks paid much reduced dividends in 2020 to give a recent example.

Especially since the "dividend" here comes mostly from selling call options that cap your upside while you still bear almost all the downside. So you're effectively betting that the capped equity return + any edge from selling the calls is > 8% or whatever the headline payout is. If it's not then they either cut the div or make up the shortfall by paying you out of NAV, aka your own money (minus tax if outside an ISA or SIPP!).

IMO it's a kind of financial sleight of hand to describe the money from this or any option-selling strategy/fund as dividends or "income", but obviously it enables the provider to market it at those kinds of investors and charge them a nice 50bps so you can see why they do.