PowerShares ETF for High Yield : PEY

Last Thursday we talked about picking stocks that increase dividend
yield regularly as a good way of investment.

Here we introduce a new Exchange Traded Fund (ETF) that is based
on exactly that principle: PEY, PowerShares High Yield Equity Dividend
Achievers Portfolio. PEY seeks investment results that, before expenses,
generally correspond to the price and yield performance of the Mergent
Dividend Achievers 50 Index. The Index is comprised of the 50 highest
yielding companies with at least 10 years of consecutive dividend increases.

The Wheaton, Illinois-based PowerShares is rather a new player in ETF
world. After this latest launch, they have just four ETFs, though there are
plans for several launches in 2005.

Last Friday PEY closed at 14.84 a share. You need to pay the usual
commission to your broker for buying or selling any ETF. We recommend
a low cost brokerage like Scottrade.com (7$ for market or limit order) for
ETF trading to keep your cost lower especially if you follow the wise path
of investing in ETF/Mutual Funds at regular interval and take advantage
of dollar-cost averaging.