VYMI Offering Opportunity for Income InvestorsThere's no shortage of ETFs that focus on international, high dividend paying stocks, but one that I use in my Vanguard account is VYMI. Additionally, the technical setup looks to be providing a great risk-reward entry point.
The fund facts? It holds about 532 stocks, most of which are in Europe and Asia, but it has stocks from pretty much every country on the planet that pays a solid dividend. It's not a top-heavy fund either, which I like for diversification principles. The top 10 holdings account for about 17.5% of total holdings. Names like Nestle, Novartis, HSBC, Toyota, and Royal-Dutch Shell are among the top ten, so there's some good quality holdings here. At current prices, we're getting a 3.8% dividend to own this fund.
Technically, the shares are testing a previous breakout level around $61.00 (shown on this weekly chart via the white line). If you look at the daily chart, we've now tested - and held - this support three times in the past few months. I've added to my position on each test and am looking to add more. Also worth noting is that the MACD appears to be turning bullish, and the RSI has already shown improvement (especially on the daily chart).
Should the global economy falter, a stop-loss at $59 would be fitting for those wishing to minimize risk. However, additional support lies just beneath at $57, so this may be best left alone unless we all hop in the hand basket to hell.
Happy trading!
