High-Yield ETFs Provide Stable Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 8 hours ago
0mins
Source: Fool
- Stable Income Source: The Invesco High Yield Dividend Achievers ETF (PEY) tracks the Nasdaq U.S. Dividend Achievers 50 index, comprising 50 stocks with high yields and a history of increasing dividends, offering a distribution rate of 4.67%, which aids investors in generating stable income amid market volatility.
- Quality Holdings Analysis: This ETF includes companies like LyondellBasell Industries (LYB) and Verizon Communications (VZ), with dividend yields of 4.11% and 5.54%, respectively, both boasting over 12 and 21 years of dividend growth, showcasing their long-term stability.
- Superior Market Performance: During market downturns, this ETF outperforms the S&P 500 index, rising approximately 3% year-to-date while the S&P 500 is down 1%, demonstrating its effectiveness as a portfolio balancing tool.
- Reinvestment Advantage: With dividends reinvested, this ETF has achieved a return of 4.7% this year, compared to -0.5% for the S&P 500 ETF, indicating its capability to enhance overall investor returns while providing passive income.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to fall
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 50.680
Low
43.00
Averages
46.42
High
51.00
Current: 50.680
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Portfolio Restructuring: As investors reassess risks, many are scaling back their 'Sell America' bets and seeking refuge in the U.S., the world's most liquid market, which has contributed to a recent boost in the dollar's value.
- Energy Market Advantage: The U.S., as a net energy exporter, benefits from oil prices rising above $100 per barrel, contrasting with Europe and Asia, which are net importers and have smaller energy sectors, exacerbating regional market performance disparities.
- Defensive Sector Performance: Although defensive sectors like consumer staples, healthcare, and telecoms have underperformed during recent market fluctuations, this suggests a rotation rather than a straightforward risk-off approach, indicating a strategic shift towards more promising markets.
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High-Yield ETFs Provide Stable Investment Opportunities
- Stable Income Source: The Invesco High Yield Dividend Achievers ETF (PEY) tracks the Nasdaq U.S. Dividend Achievers 50 index, comprising 50 stocks with high yields and a history of increasing dividends, offering a distribution rate of 4.67%, which aids investors in generating stable income amid market volatility.
- Quality Holdings Analysis: This ETF includes companies like LyondellBasell Industries (LYB) and Verizon Communications (VZ), with dividend yields of 4.11% and 5.54%, respectively, both boasting over 12 and 21 years of dividend growth, showcasing their long-term stability.
- Superior Market Performance: During market downturns, this ETF outperforms the S&P 500 index, rising approximately 3% year-to-date while the S&P 500 is down 1%, demonstrating its effectiveness as a portfolio balancing tool.
- Reinvestment Advantage: With dividends reinvested, this ETF has achieved a return of 4.7% this year, compared to -0.5% for the S&P 500 ETF, indicating its capability to enhance overall investor returns while providing passive income.
See More
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- Strong Stock Performance: The stock has surged nearly 50% in 2026 and achieved an astonishing 291% gain in 2025, with the current price reaching $200 per share, which may lead to increased volatility in future performance.
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- Target Sales Decline: Target has faced three consecutive years of declining sales, and although its stock rose nearly 25% in 2026, I chose to sell to make room for other investments, despite the hope brought by a new CEO.
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- Market Performance Reversal: Following the outbreak of the Iran war, the U.S. stock market has shifted from being the worst performer to the best, indicating a resurgence of investor confidence in U.S. equities amidst rising global uncertainties.
- Portfolio Restructuring: As investors reassess risks, many are scaling back their 'Sell America' bets and seeking refuge in the U.S., the world's most liquid market, which has contributed to a recent boost in the dollar's value.
- Energy Market Advantage: The U.S., as a net energy exporter, benefits from oil prices rising above $100 per barrel, contrasting with Europe and Asia, which are net importers and have smaller energy sectors, exacerbating regional market performance disparities.
- Defensive Sector Performance: Although defensive sectors like consumer staples, healthcare, and telecoms have underperformed during recent market fluctuations, this suggests a rotation rather than a straightforward risk-off approach, indicating a strategic shift towards more promising markets.
See More
High-Yield ETFs Provide Stable Investment Opportunities
- Stable Income Source: The Invesco High Yield Dividend Achievers ETF (PEY) tracks the Nasdaq U.S. Dividend Achievers 50 index, comprising 50 stocks with high yields and a history of increasing dividends, offering a distribution rate of 4.67%, which aids investors in generating stable income amid market volatility.
- Quality Holdings Analysis: This ETF includes companies like LyondellBasell Industries (LYB) and Verizon Communications (VZ), with dividend yields of 4.11% and 5.54%, respectively, both boasting over 12 and 21 years of dividend growth, showcasing their long-term stability.
- Superior Market Performance: During market downturns, this ETF outperforms the S&P 500 index, rising approximately 3% year-to-date while the S&P 500 is down 1%, demonstrating its effectiveness as a portfolio balancing tool.
- Reinvestment Advantage: With dividends reinvested, this ETF has achieved a return of 4.7% this year, compared to -0.5% for the S&P 500 ETF, indicating its capability to enhance overall investor returns while providing passive income.
See More
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- Financial Growth Outlook: Verizon anticipates at least 7% growth in cash flow for 2026, reaching $21.5 billion, which will provide the company with enhanced financial flexibility to support future investments and shareholder returns.
- User Growth Targets: The company aims to add between 750,000 and 1 million net postpaid phone subscriptions and over 1 million broadband net additions in 2026, while reducing churn by at least 5 basis points, which will help increase market share and customer loyalty.
- Shareholder Return Plans: Verizon expects to implement annual dividend increases and a $25 billion share repurchase program over three years, a move designed to bolster investor confidence and enhance shareholder value.
- Acquisition Strategy: The acquisition of Frontier Communications will broaden Verizon's fiber footprint, enabling packaged broadband and wireless services, which is expected to reduce dropouts by approximately 40%, thereby strengthening its competitive position in the market.
See More
Bloom Energy Stock Surges, Optimistic Outlook Ahead
- Outstanding Stock Performance: Bloom Energy's shares have surged nearly 50% in 2026, significantly outperforming the broader market, following an astonishing 291% increase in 2025, reflecting strong market demand and investor confidence.
- Strategic Partnership: Bloom entered a $5 billion strategic partnership with Brookfield Asset Management, making Bloom's servers the preferred onsite power provider for Brookfield's AI factories, further solidifying its market position in AI infrastructure.
- Financial Condition Analysis: Despite recording a record $777 million in revenue for Q4, Bloom only achieved a net income of $1.1 million, indicating weak profitability, with total liabilities at $3.6 billion, necessitating attention to future profitability improvements.
- Market Outlook: Bloom's stock has risen 560% compared to last year, and while a potential 36% increase could push its valuation into unstable territory, the demand from data center construction is expected to drive revenue growth in 2026, becoming a key growth driver moving forward.
See More
Bloom Energy Reports Record Growth Amid Thin Profitability
- Significant Revenue Growth: Bloom Energy reported a record $777 million in revenue for Q1 2026, reflecting substantial demand in the on-site power generation market, although its net income was only $1.1 million, indicating thin profitability.
- Strong Stock Performance: The stock has surged nearly 50% in 2026 and achieved an astonishing 291% gain in 2025, with the current price reaching $200 per share, which may lead to increased volatility in future performance.
- Strategic Partnership: Bloom Energy entered a $5 billion strategic partnership with Brookfield Asset Management, positioning its servers as the preferred on-site power provider for Brookfield's AI factories, which is expected to enhance its market share.
- Tight Financial Condition: While Bloom Energy holds approximately $2.5 billion in cash and equivalents, its total liabilities stand at $3.6 billion, indicating that despite rapid growth, the company faces significant financial leverage risks, raising questions about its future profitability.
See More
Portfolio Adjustment: Selling Three Major Stocks
- Verizon Underperformance: Despite Verizon's stock rising 25% in 2026, its revenue growth has not exceeded 6% annually for 16 years, and future growth is projected to fall below 2% over the next four years, prompting my decision to sell and free up capital.
- Target Sales Decline: Target has faced three consecutive years of declining sales, and although its stock rose nearly 25% in 2026, I chose to sell to make room for other investments, despite the hope brought by a new CEO.
- Baidu's Weak Growth: Baidu's stock surged 35% over the past year, yet it has posted negative revenue growth in three of the last four years, with analysts predicting lower profit targets for the next two years, leading me to sell in search of faster-growing alternatives.
- Market Volatility Influences Decisions: In the context of market turbulence, I opted to sell these three stocks at high valuations to reallocate my portfolio into more attractive opportunities, even though they had previously served as my
See More
