HDV - HDV: Great Fit As A Core For Income-Seeking Portfolios

2024-03-19 17:27:56 ET

Summary

• The iShares Core High Dividend ETF is a low-cost ETF that seeks to replicate the performance of high dividend-paying U.S. stocks.
• The ETF applies financial filters to select stocks with sustainable dividends and higher margins of safety.
• Despite consistent dividend payments, the ETF has underperformed the S&P 500 and other yield-generating ETFs.
• However, HDV possess the right characteristics to deliver predictable and growing dividend income going forward in conjunction with a solid value tilt that could contribute to notable price appreciation.
• In this article I elaborate on HDV's fundamentals and structure, while also providing reasons why I consider this ETF a buy.

The iShares Core High Dividend ETF ( HDV ) is an ETF with more than $10 billion in AUM, and as is typically the case with iShares vehicles, the expense ratio is very low at 0.08%....

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