DIV - DIV: I Love The Sector Allocation

2024-06-23 15:30:00 ET

Summary

• Global X SuperDividend® U.S. ETF (DIV) seeks to replicate the performance of 50 large dividend-paying US stocks with lower volatility.
• DIV's sector composition includes high-yielding sectors like energy, REITs, and Utilities, offering exposure to potential multi-year leadership cycles.
• While DIV has underperformed compared to peers, its current yield of 6.93% and monthly distribution schedule make it appealing for income-seeking investors.

I’ve gone on record multiple times arguing that the pendulum is due to swing back in favor of dividend stocks, away from the more momentum/capital appreciation parts of the marketplace which have dominated total return since the end of 2022. But in the pendulum swinging back towards dividend-paying stocks, there’s going to be a lot of nuance and different ways of playing that. One fund you may have come across and considered is the Global X SuperDividend® U.S. ETF ( DIV ). It hasn’t done well, but perhaps fortunes are about to change given the way the portfolio is constructed....

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