FDVV - FDVV: 3.28% Expected Dividend Yield Practical Index Changes And Still A Buy

• The Fidelity High Dividend ETF selects about 100 large-cap stocks screened for three factors: dividend yield, payout ratio, and dividend growth. Fees are 0.29%, and FDVV's trailing yield is 2.91%.
• I expect the yield to increase to 3.28% after February's Index reconstitution. This article will detail those changes, highlighted by a substantial increase to defensive Utilities stocks.
• I also expect dividend growth to improve, since current constituents have a history of growing dividends and the capacity to continue doing so due to double-digit revenue and earnings growth.
• FDVV remains a buy for high-yield investors taking their dividend payments in cash rather than reinvesting them. However, from a total returns perspective, I don't see it being better than a straightforward low-cost value fund.

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