GME - Is SMHD's 22% Yield Sustainable?
This article was first published on February 10, 2019.
In our latest ETN snapshot, ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN (SMHD) became the highest yielding 2x ETN with a trailing-twelve months [ttm] yield of 21.8%, taking the mantle from the MRRL (21.8%) and MORL (21.7%) combo (note that MRRL yields slightly higher than MORL due to the latter's premium).
It is natural to ask the question: is SMHD's yield sustainable?
Distribution history and growth
In last month's snapshot, we calculated the new calendar 1-year DGRs and found