Below are firms that Goldman Sachs expect will pay out a special dividend before new taxes take effect:
Federated Investors Inc (FII)
Goldman Sachs believes this asset management company may pay a special dividend before the year end that will yield 4.5%. Currently there are two ETFs that offer exposure to FII:
- SPDR S&P Capital Markets ETF (KCE): This ETF allocates 3.29% to Federated Investors and with an expense ratio of 0.35%, it’ one of the cheapest financial equity ETFs out there.
- S&P Equal Weight Financial ETF (RYF): As an equally-weighted fund, this ETF allocates 1.35% to Federated Investors and all of the other companies it holds, including Moody’s and Citigroup [see also The Top 10 Cheapest And Most Expensive ETFs].
Franklin Resources Inc. (BEN)
Goldman Sachs also believes this asset management company could pay a special dividend in the near future that will yield 0.9%. Currently there are two ETFs that offer exposure to BEN, one of which also provides exposure to Federated Investors:
- KBW Capital Markets Portfolio (KBWC): Allocating 8.44% to Franklin Resources makes it the second-largest holding in the portfolio, only behind State Street Corp.
- SPDR S&P Capital Markets ETF (KCE): This ETF allocates 3.08% to BEN, less than it does for Federated and other financial institutions.
General Dynamics (GD)
After a closer look, Goldman Sachs believes this aerospace and defense company may pay a special dividend yielding 3.1%. Currently there are four ETFs that offer exposure to GD:
- Dow Jones US Aerospace & Defense Index Fund (ITA): By allocating 5.89% to GD, this industrial equities ETF offers by far the most exposure to the firm.
- Aerospace & Defense (PPA): While PPA mostly holds industrial firms like GD, which makes up 5.05% of the fund’s total assets, there is also a number of minority holdings in technology and consumer cyclical firms.
- SPDR S&P Aerospace & Defense ETF (XAR): GD is one of XAR’s largest holding, allocating 4.58% to the company out of its 36 holdings.
- Dynamic Industrials (PRN): Comprising of companies evaluated by fundamental growth, stock valuation, investment timeliness and risk factors, GD makes up 2.43% of the fund.
Las Vegas Sands Corp (LVS)
Goldman Sachs expects that this Vegas gaming corporation will pay out a 2.1% special dividend before 2013. Currently there are four ETFs that offer exposure to LVS:
- Market Vectors Gaming ETF (BJK): This gaming ETF offers exposure to companies like Wynn Resorts, Sands China and MGM Resorts, but the heaviest allocation is in Vegas Sands at 8.26%.
- Large-Cap Growth Equity Strategy Fund (RWG): With a large range of focuses from technology, consumer cyclical and healthcare, LVS is one of the largest of the 53 holdings with its 3.88% weighting.
- Wilshire 4500 Completion ETF (WXSP): By removing the 500 stocks on the S&P from the Wilshire 5000 Index, investors gain more exposure to LVS, which at 0.95% is again the top holding.
- Extended Market ETF (VXF): This domestic equities fund is set up much like WXSP, with a broad overview of the entire market, but with 3,040 holdings, its top allocation, LVS, only makes up 0.64% of the fund.
MasterCard Incorporated Class A (MA)
Goldman Sachs expects that this credit card giant will pay out a comparatively smaller 0.2% special dividend before the year is through. Currently there are three ETFs that offer exposure to MA:
- Dow Jones US Financial Services Index Fund (IYG): This 12-year-old fund offers exposure to game changers like Wells Fargo, JPMorgan Chase and Visa, but with 3.49% allocation, MasterCard is in the top ten of these 112 holdings.
- Dow Jones US Financial Sector Index Fund (IYF): Another veteran iShares financial fund, MasterCard make up 1.95% of this fund.
- S&P Equal Weight Technology ETF (RYT): An un-managed and equally weighted fund, RYT accounts for 1.61% of the portfolio, which is heavily biased towards technology and industrial stocks.
Stryker Corporation (SYK)
This technical medical corporation is expected to pay out a 1.5% special dividend in the next month. Currently there are two ETFs that offer exposure to SYK:
- Dow Jones US Medical Devices Index Fund (IHI): This high-flying ETF has enjoyed the biotech market upturn with a current year-to-date return of 16%. It allocates a whopping 5.91% to Stryker Corp.
- RAFI Fundamentals Pure Mid Growth Portfolio (PXMG): Comprised of mid-growth U.S. companies ranging from REITs, industrial stocks and healthcare equities, SYK’s 1.79% allocation makes it one of the largest holdings in the fund.
Western Refinancing Inc (WNR)
Goldman Sachs believes this integrated oil and refining company may pay a special dividend before the year-end that will yield 0.9%. Currently there is one ETF that offers exposure to WNR:
- SmallCap Earnings Fund (EES): This fundamentally weighted ETF allocates 1.09% to WNR and other top holdings like Cirrus Logic, Veeco Instruments and Revlon, which are only three of the over 900 firms included in the fund. ...