DIVZ - DIVZ: 2.87% Yield And Improved Fundamentals For This Actively Managed Dividend ETF
2024-07-08 07:06:56 ET
Summary
- DIVZ is an actively managed fund designed to deliver an above-average dividend yield with less volatility than broad market funds. I estimate its forward yield at 2.87%, which pays monthly.
- Since my review one year ago, DIVZ's fundamentals relative to other dividend funds have improved. It's now much more balanced on growth, value, and volatility, though quality remains an issue.
- Adding three semiconductor stocks boosts DIVZ's growth potential, and although it has a negative impact on dividend yield, I believe it's in the best interests of shareholders.
- DIVZ could improve its dividend yield by reducing its 0.65% expense ratio, which is among the highest in its category. Along with its weak quality, I'm hesitant to rate it a buy.
- Still, DIVZ is back on my watchlist and is one of the more exciting dividend funds to watch these days. It deserves its solid "hold" rating.