How to Lose a Year's Worth of Dividend Yield in One Day
About a week ago, I blogged that "Total Return is Everything" in 10 Things I Believe About Saving and Investment and that folks need to be aware of the risks embedded in so-called conservative investments. We got the perfect illustration of that Friday in the Utilities Select Sector SPDR Fund (trading symbol: XLU). XLU has one of the higher 12-month dividend yields at 3.27% (source: Morningstar) yet it lost 3.75% on Friday alone. One day's loss in fund value swallowed an entire year of dividends.