A Nice Fat 26% Yield For The New Year, Big Dividend Coming Soon From SMHB

Co-produced with PendragonY for High Dividend Opportunities
Quite a few of the very High Yielders on our watchlist look like they are bottoming and it may be a last chance to buy before a rebound. One of our favorite products with a very fat yield is ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series B (SMHB).
The recent price drop has made SMHB even more attractive. SMHB's Current Yield (annualized) is at 26%, which is calculated as “the sum of the most recently announced Coupon Amount and the two immediately preceding Coupon Amounts, multiplied by four (to annualize such coupons), divided by the Current Indicative Value of the ETN”.
About SMHB
SMHB is a diversified exchange product issued by UBS Bank that tracks (twice leveraged) a basket of small cap high-dividend stocks. In fact, this is a quite unique product that provides instant diversification in several sectors across the high- yield spectrum. We will go into the details of its holdings later on in this report.
SMHB is quite a new product issued just a few weeks ago (at the beginning of November) but the concept is not new. This is the sister Fund of ETRACS Monthly Pay 2xLeveraged US Small Cap High Dividend ETN Series A (SMHD). Both funds are issued by UBS Bank (UBS) and track exactly the same index and are also 2 times leveraged. In fact, SBHB and SMHD are almost identical with very minor differences that we will highlight later in this report.

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