2024-03-15 23:08:02 ET
Summary
- CGDV only has a short two-year track record, but this actively managed ETF has already demonstrated it's possible for dividend strategies to outperform the broader market.
- While CGDV lacks the downside protection offered by many peers in the large-cap value ETF category, it's one of the few to offer nearly 10% estimated earnings per share growth.
- This feature means dividend ETF investors don't necessarily have to sacrifice total returns for income, though CGDV's modest 1.81% expected dividend yield is not competitive.
- Still, its fundamentals look excellent when compared to more established ETFs with similar yields like VIG and DGRW. In addition, my fund overlap analysis reveals it could make a terrific complementary holding.
- I'm reiterating my buy rating on CGDV.
Investment Thesis
Six months ago, I initiated coverage of the Capital Group Dividend Value ETF ( CGDV ), listing impressive performance, a unique multi-manager structure, and solid fundamentals as reasons for my "buy" rating. Since then, it's slightly outpaced the S&P 500 Index, one of only a handful of large-cap value ETFs to do so over this period....
Read the full article on Seeking Alpha
For further details see:
CGDV: Top-Performing Dividend ETF With Excellent Earnings Growth Potential