I told you that the Infracap MLP ETF (AMZA) was a dog. Well, the fund just cut its dividend by 37%.
This is one of the biggest ETF payout cuts in recent memory, and it’s a gut punch to shareholders who rode out massive underperformance for the income tradeoff. That payout mattered. Just look at the difference between price returns and total returns in the chart below:
Just because a yield is wrapped in a fancy ETF wrapping doesn’t mean it’s safe.
This ETF dividend slash could be the first of several. So let’s talk about three ETFs – which pay between about 9% and 24% – whose dividends are far from secure.…