|Bid||0.00 x 1100|
|Ask||94.99 x 1000|
|Day's Range||93.97 - 94.45|
|52 Week Range||79.39 - 95.51|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.74|
|Expense Ratio (net)||0.08%|
In an uncertain market environment where trade wars make the major indexes succumb to wild swings, dividend exchange-traded funds can help provide the shelter and income conservative investors desire. One of the ETFs to consider that checks those boxes is the iShares Core High Dividend ETF (HDV) . HDV seeks to track the investment results of the Morningstar Dividend Yield Focus IndexSM composed of relatively high dividend paying U.S. equities.
Chances of a rate cut by Fed chair Powell went higher. If this happens, the following investing strategies would be of investors' help.
In an uncertain market environment where trade wars make the major indexes succumb to wild swings, dividend exchange-traded funds can help provide the aspirin for investor headaches caused by volatility. Other challenges to dividend yields is a more cautious central bank that is deviating from its rate-hiking measures seen in 2018. 2019 is certainly seeing a more cautious Federal Reserve when juxtaposed with the rate-hiking machine it was in 2018.
We have highlighted five dividend ETFs that are clearly outpacing the broad market indices by wide margins and have a Zacks ETF Rank 1 or 2, suggesting further outperformance in the months ahead.
Editor's note: This story was previously published in September 2018. It has since been updated and republished.The universe of exchange-traded funds (ETFs) is awash in low-fee products, and the space is growing as issuers reduce their fees to lure investors.Income-seeking investors do not have to pay up to access high-dividend ETFs. In fact, numerous high-dividend ETFs can be inexpensive, which is an important point for income investors looking to keep more of those dividends and a higher share of their invested capital. High-dividend ETFs are often embraced by long-term investors and over the long-term, lower fees can mean better outcomes for investors.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the past several years, data confirm that when it comes to adding new assets, the best ETFs are usually those with annual fees of 0.20% or less. Plenty of high-dividend ETFs fit into that category, making it a cost-effective method for thrifty investors to access broad baskets of dividend stocks. * 15 Stocks Sitting on Huge Piles of Cash Here are some high-dividend ETFs, with very low fees, for income-minded investors to consider. High-Dividend ETFs to Buy: iShares Core High Dividend ETF (HDV)Expense Ratio: 0.08%, or $8 annually per $10,000 investmentMany high dividend ETFs weight components by yield, a strategy that has some drawbacks. Those disadvantages include vulnerability to rising interest rates and the potential for exposure to financially challenged companies that may have trouble maintaining and growing dividends.The iShares Core High Dividend ETF (NYSEARCA:HDV) has a 12-month dividend yield of 3.03%, which is well above the S&P 500 and 10-year Treasuries. However, this high-dividend ETF follows the Morningstar Dividend Yield Focus Index, which screens companies for financial health, giving the fund a quality look.With an annual fee of just 0.08%, HDV is one of the cheaper high dividend ETFs on the market today. That low fee coupled with its sector allocations make HDV ideal for conservative investors. The healthcare, consumer staples, telecom and utilities sectors, four of HDV's top five sector weights, can all be considered defensive groups. High-Dividend ETFs to Buy: SPDR Portfolio S&P 500 High Dividend ETF (SPYD)Expense Ratio: 0.08%The SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) is one of the least expensive dividend ETFs on the market, high dividend or otherwise. The ETF tracks the S&P 500 High Dividend Index, the high-dividend offshoot of the traditional S&P 500.SPYD's yield requirement gives this high-dividend ETF a focused roster of just 80 stocks, but the 12-month dividend yield of 4.65% makes this high-dividend ETF appealing for income investors relative to standard broad market funds. * 15 Stocks Sitting on Huge Piles of Cash SPYD relies heavily on high income sectors that have shown historical vulnerability to rising interest rates -- a trait to keep in mind in the current market environment. The real estate and utilities sectors combine for almost 35% of this high dividend ETF's weight. High-Dividend ETFs to Buy: Invesco Dow Jones Industrial Average Dividend ETF (DJD)Expense Ratio: 0.3%The Invesco Dow Jones Industrial Average Dividend ETF (NYSEARCA:DJD) is a yield-weighted approach to the venerable Dow Jones Industrial Average. What this high-dividend ETF does is weigh the 30 Dow stocks by their trailing 12-month dividend, not price, as the traditional Dow does.DJD's yield focus makes Verizon Communications (NYSE:VZ) the high dividend ETF's largest holding. DJD's largest sector weight is technology, and the fund devotes just 12.36 to industrials.While DJD appears to be a high-dividend ETF, the fund offers significant dividend growth potential because many of the Dow's 30 member firms have payout-increase streaks that can be measured in decades. High-Dividend ETFs to Buy: Invesco S&P 500 Quality ETF (SPHQ)Expense Ratio: 0.28%With a distribution rate of just 1.8%, the Invesco S&P 500 Quality ETF (NYSEARCA:SPHQ) does not scream "high dividend ETF." SPHQ's underlying index, the S&P 500 Quality Index, does not even emphasize dividends.Rather, that benchmark focuses on firm's "that have the highest quality score, which is calculated based on three fundamental measures, return on equity, accruals ratio and financial leverage ratio," according to Invesco. While SPHQ is not explicitly a high -dividend fund, reliable, growing dividends are often a hallmark of companies meeting the standards of the quality factor. * 15 Stocks Sitting on Huge Piles of Cash With a combined weight of over 40% to the technology and consumer services sectors, SPHQ has the feel of a growth ETF, but that means this fund also pairs well with more traditional high-dividend ETFs, such as some of the funds highlighted above. High-Dividend ETFs to Buy: Vanguard High Dividend Yield ETF (VYM)Expense Ratio: 0.06%Home to $22.72 billion in total net assets, the Vanguard High Dividend Yield ETF (NYSEARCA:VYM) is one of the largest dividend ETFs of any variety. It is not unreasonable to believe that VYM's name frames the fund as a high-dividend ETF, but a yield of 3.44% is not alarmingly high.More importantly, VYM is not overly dependent on rate-sensitive sectors. This high-dividend ETF features no real estate exposure and the bond-esque telecom and utilities sectors combine for just 12.80% of VYM's weight.A quarter of the fund's holdings hail from the industrial and healthcare sectors. Financials, a sector that has been a major driver of S&P 500 dividend growth over the past year, is this high dividend ETF's largest sector exposure at 15.3%. High-Dividend ETFs to Buy: JPMorgan U.S. Dividend ETF (JDIV)Expense Ratio: 0.12%The JPMorgan U.S. Dividend ETF (NYSEARCA:JDIV) is one of the youngest funds on this list, having debuted in late 2017, but it fits the bill as a cost-effective, high-dividend ETF. JDIV "utilizes a rules-based approach that adjusts sector weights based on volatility and yield and selects the highest yielding stocks," according to the issuer.With a 12-month yield of 4.07%, JDIV has high-dividend ETF credentials. JDIV's annual fee of 0.12% is quite low. * 15 Stocks Sitting on Huge Piles of Cash High-Dividend ETFs to Buy: Xtrackers MSCI EAFE High Dividend Yield Equity ETF (HDEF)Expense Ratio: 0.33%The Xtrackers MSCI EAFE High Dividend Yield Equity ETF (NYSEARCA:HDEF) targets the MSCI EAFE High Dividend Yield Index, a benchmark that is a high-dividend derivative of the widely followed MSCI EAFE Index.While HDEF is a credible name among international high dividend ETFs, the laggard status of European stocks has hindered HDEF in recent months. On the more positive side of the ledger is ex-U.S. dividend growth and valuation opportunities across developed markets, two traits that speak to long-term opportunity with HDEF.As of this writing, Todd Shriber did not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market's Anniversary Compare Brokers The post 7 Inexpensive, High-Dividend ETFs to Buy appeared first on InvestorPlace.
In 2018, U.S. dividend growth remained solid, although some dividend exchange traded funds (ETFs) were challenged by the Federal Reserve's four interest rate hikes. Expectations are in place that the Fed will slow its pace of rate hikes this year or possibly not raise rates at all. Joe Smith, deputy chief investment officer (CIO), at CLS Investments ($9.2 billion AUM), recently discussed his firm's approach to dividend strategies with ETF Trends.
This article originally appeared in Morningstar Direct Cloud and Morningstar Office Cloud. The pace of fee cuts on passively managed funds may have slowed in some corners of the fund universe, but not at Vanguard.
On November 16, Merck’s (MRK) stock price closed at $76.06, which represents ~1.63% growth from its close of $74.84 on November 15. Merck’s stock price grew from $56.79 when the market opened on January 2 to $76.06 when the market closed on November 16, which representing ~34% year-to-date growth. On November 16, Merck hit its 52-week high of $76.25.
When the stock market gets rough, investors often flee to dividend stocks, which explains why iShares Core High Dividend is now in IBD's ETF Leaders screen of top ETFs.
On October 25, Merck & Co. (MRK) announced a dividend of $0.55 per share for its outstanding common stock in the fourth quarter of 2018. That’s a ~15% increase from its dividend of $0.48 per share in the fourth quarter of 2017.
The consensus target price for 3M stock has fallen since its earnings release. The current analyst consensus indicates a target price of $205.94, compared to $213.60 before its third-quarter earnings release.
Johnson & Johnson’s (JNJ) Vision Care segment generated revenues of $1.13 billion in the third quarter compared to $1.09 billion in the third quarter of 2017, reflecting ~3.8% YoY (year-over-year) growth.
In this part, we’ll compare Pfizer’s (PFE) valuation with its peers including Merck (MRK), Johnson & Johnson (JNJ), Eli Lilly (LLY), and Bristol-Myers Squibb (BMY).
Analysts expect Merck (MRK) to report GAAP net income of $2.23 billion and GAAP EPS of $0.83 in the third quarter of 2018. In Q2 2018, the company’s GAAP net income fell YoY (year-over-year) from $1.9 billion to $1.7 billion, and its GAAP EPS fell YoY from $0.71 to $0.63. Merck’s non-GAAP net income grew ~3% YoY in Q2 2018, to $2.9 billion from $2.8 billion, and its non-GAAP EPS grew ~5% YoY from $1.01 to $1.06.
In June, Pfizer (PFE) announced a dividend of $0.34 for the third quarter on the company’s common stock. Pfizer paid a cash dividend of $0.34 on September 4 to its shareholders of record on August 3. Pfizer delivered a dividend yield of 3.11% in the third quarter.
President Donald Trump enacted a tax reform plan that allowed companies to repatriate billions of dollars in overseas revenue back home, driving increased demand for dividend stock ETF strategies that ...