Every New York stock exchange trading day I’m posting a daily dividend stock or fund review.

This week’s slot in the Safari portfolio is reserved for the financial services sector.

That sector includes nineteen industries all related to managing money. Industries include: asset management; banks either global or from any of seven regions, capital markets, credit services, financial exchanges, insurance in six specializations, savings banks, and specialty finance.

Today I’m reviewing a reviewing a fund of funds that seeks to measure the performance of the top 30 U.S. exchange-listed closed-end funds. Its name is YieldShares High Income Exchange Traded Fund (ETF). It’s trading ticker symbol is YYY.

Three keys evaluate dividend stocks and funds like YYY: 

(1) Price

(2) Dividends

(3) Returns

YYY Price

YieldShares High Income Exchange Traded Fund’s price at Wednesday’s close was $19.45 per share. The funds has positive momentum. Just a year ago its price was $18.55. That’s a gain of $0.90 in the past year. Can YYY do as well in the coming year?  If it does its price would increase to $20.35, or 4.6% 

YYY Dividends

The fund’s most recent monthly dividend was $0.26 declared in November, covering two months.  The dividend equates to $0.13 x 12 or $1.56 annually.

At Wednesday’s closing price of $19.45 per share the annual yield from $1.56 showed as 8%.

Are Gains Ahead For YYY?

Adding the dividend of $1.56 to the $0.90 potential upside from a repeat of 2017’s price performance projects a possible $2.46 gross gain.  

Calculating potential net gains for YYY depends on how many shares are bought. A $1,000.00 budget amount by YYY’s last closing price would let us purchase 51 shares. 

Those 51 shares will be hit with a broker fee of about $5 at purchase and another $5 at sale (for a total of $10 to realize any price gains). Thus, each share carries a brokerage cost of about $0.20.

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