Hi Gang, I've been looking around for a way to put idle cash to work and a friend said: "put the cash in a high yield Closed-End Fund or REIT that pays a monthly dividend - off the top of head HYF (this one has been dissolved) is a good example - it's paying 6-7% a year & pays monthly. So any month most of your cash earns 6-7% annual rate which more than offsets any commissions."
So I went looking and found a couple that might work, SPFF, 5.85% and pays out 11 months of the year, with the second one in December paying in January but it a low volume ETF, roughly 100k a day so it might not be a good choice. Then there is JNK, 6.2%, 12 payments a year, two in December, one paying in January.
This would argue for a single cash fund for all your AIM programs, and since mostly trades are rarely more than one a month the double commission (selling the cash ETF and buying whichever position needed) and since the dividend on the cash is not in the individual AIM account, keeping track of where you are is easier.
Then I decided to take a look at ETFs/ETNs and got these results:
Symbol Low to High % % Dividend Volume
HYD 108.91% 5.1 215,773
PHB 113.79% 4.6 206,050
HYG 115.35% 5.6 9,396,390
PCY 115.62% 5.8 2,351,109
EMLC 118.78% 5.9 922,742
JNK 118.87% 6.1 5,257,130
PFF 124.81% 5.8 2,704,493
VEU 125.48% 5.2 1,281,773
VGK 128.04% 7 1,432,639
VWO 138.21% 4.8 9,350,448
JNK, HYD, HYG (2 in December), PCY, EMLC (2 in December), PFF (2 in December), all have 12 dividends a year.
The three Vanguard ETFs, VEU, VGK and VWO all pay quarterly, but with an odd characteristic. Both VEU and VGK pay a higher dividend in June and VWO pays a higher dividend in both June and September. VEU and VGK are free trades at TDAmeritrade.
I've eliminated the high dividend ones that pay quarterly (except Vanguard) or only once or twice a year.
Best,
Allen
