The markets started the second half of 2024 with a strong performance, particularly for S&P 500 and Nasdaq. Earnings season and the Fed meeting are ahead, alongside the anticipation of a rate cut. The Dividend Harvesting Portfolio continues to make new highs, with a steady increase in dividend income, paving the way for an optimistic future.
The article discusses the assessment of SPYD, a dividend-focused ETF, and its performance. It highlights the fund’s diverse portfolio, sector vulnerabilities, limited dividend growth, and underperformance compared to alternative ETFs. The high dividend yield makes SPYD suitable for income-dependent investors, but its sector weighting and lack of technology exposure may lead to continued underperformance in price appreciation and total return.
Investors may consider adding dividend strategies to their portfolios as U.S. dividend payments hit an all-time high in 1Q24. Companies globally are increasing payouts, with U.S. firms like Disney, Meta, and T-Mobile driving the trend. This could benefit dividend-focused ETFs like VIG and SCHD, with total payouts projected to reach $1.72 trillion in 2024.
The S&P 500 Dividend Aristocrats Index comprises 67 dividend growth stocks with 25+ years of higher dividend payouts. Quality scores determine stock ratings as Exceptional, Excellent, Fine, Decent, Poor, or Inferior. Valuation screens are used to assess undervaluation. Undervalued Dividend Aristocrats are identified and ranked, providing insight for potential investment candidates.
Midstream ETFs, particularly the four largest ones including AMLP, EMLP, MLPA, and MLPX, have shown robust performance in 2023. AMLP stands out with significant inflows, outperforming its peers in total return and dividend yield. EMLP, however, lags due to its heavy weighting in the utilities sector and higher expense ratio.
WisdomTree has expanded its flagship suite of equity ETFs targeting dividend-paying companies that have strong fundamental metrics with future dividend growth potential. The strategy targets
The WisdomTree International Quality Dividend Growth Index (WTIDG) and the WisdomTree International Hedged Quality Dividend Growth Index (WTIDGH) mark their ten-year anniversaries at the end of November. Both track profitable and growing companies and have outperformed the MSCI EAFE Index and MSCI EAFE Local Index respectively over almost a decade. The hedged index, WTIDGH, has particularly benefited from USD strength during its lifetime. WisdomTree’s indexes employ strategies such as rebalancing, maintaining dividend stream weights, and limiting the impact of volatile currencies.
The Amplify CWP Enhanced Dividend Income ETF (DIVO) has been underperforming in 2023 despite its strategic approach and strong holdings. Even though the fund has stocks with a solid dividend growth history, the fund’s own dividend distribution growth has been minimal. Concerningly, dividends haven’t grown significantly in recent years, but the fund has seen net asset value growth. Whether the fund will increase its distributions remains a decision for the fund’s management.
At 24/7 Wall St., we know how vital dividend size, stability, and growth are to growth and income investors who need a dependable income stream.
Virtus InfraCap U.S. Preferred Stock ETF (PFFA) seeks yield and capital appreciation through preferred securities of U.S. mid to large-cap companies. The fund leverages external assets to enhance yield potential and can activate optional strategies. Despite a concentration in real estate, it offers diversified security. Though impacted by duration risk, the fund’s 10% dividend yield presents attractive entry points for investors amid looming normalization of interest rates.
A handful of midstream names have already announced increases to their dividends. The midstream segment is known for offering generous income, making it a primary
The Schwab U.S. Dividend Equity ETF (SCHD) offers well-diversified stocks with economies of scale, high dividend growth, and a low expense ratio. Despite underperforming compared to the S&P 500 in the past 12 months, its shares are trading closer to the 52-week low, possibly indicating less downside risk. With reasonable valuations for its top holdings and consistent dividend growth, SCHD could provide stable income and potential long-term outperformance for investors.
First Trust Morningstar Dividend Leaders Index Fund (FDL) is an ETF that invests in dividend-paying stocks of large-cap companies.FDL focuses on core sectors like financial, energy, and utilities, with a portfolio of 100 securities.FDL has generated a steady and decent yield, with impressive total returns, but major investments in banking stocks have posted consistent price loss.
This article discusses SCHD’s dividend growth history and forward-looking dividend income.Multiple fronts of risks to SCHD’s dividend growth make Q3 & Q4 dividend payments the most anticipated since the fund’s inception.SCHD is a great ETF for investors to create a sustainable inflation-beating income stream.
