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Dividend ETF (HDV) Hits New 52-Week High

Sweta Killa

For investors seeking momentum, iShares Core High Dividend ETF HDV is probably on radar now. The fund just hit a 52-week high and is up about 17.1% from its 52-week low price of $79.39/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

HDV in Focus

This fund offers exposure to the 75 dividend-paying domestic stocks that have been screened for financial health. It has key holdings in energy, consumer staples, financials and healthcare, with double-digit exposure each. The ETF charges 8 basis points in annual fees (see: all the Large Cap ETFs here).

Why the Move?

The dividend corner of the broad U.S. stock market has been an area to watch lately given the bouts of volatility that have raised the appeal for dividend investing. Dividend-paying securities are the major sources of consistent income for investors when returns from the equity market are at risk. This is because dividend products offer the best combination of safety in the form of payouts and stability as these are less immune to the large swings in stock prices. Additionally, the Fed’s shift to a patient approach on interest rates after lifting rates for three years has returned the lure for dividend investing this year.

More Gains Ahead?

Currently, HDV has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook, suggesting that the outperformance could continue in the months ahead. Further, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.

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iShares Core High Dividend ETF (HDV): ETF Research Reports
 
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