SPYD - DIVG: Should You Buy This New Monthly Paying Dividend Growth ETF?
2024-04-24 04:36:16 ET
Summary
- The new Invesco S&P 500 High Dividend Growers ETF selects 100 companies from the S&P 500 Index that have increased or maintained dividend per share payments for five years.
- DIVG has a 0.39% expense ratio and only $2.8 million in assets under management with 100K shares outstanding. I estimate the ETF yields 3.44% at current prices.
- DIVG is a solid income play, as its Index's unique calculation for forecasted dividend growth ends up emphasizing dividend yield more. However, there are no additional quality screens.
- SPYD and DVY have similar compositions as DIVG, as they also overweight the Financials and Utilities sectors. This article evaluates the fundamentals all three ETFs at the sub-industry level and highlights both positive and negative features.