2024-04-25 15:11:33 ET
Summary
- PEY tracks the NASDAQ US Dividend Achievers 50 ETF Index, selecting high-dividend stocks from all size segments with at least ten consecutive years of dividend increases.
- The Index dividend yield is 5.23%, but PEY's 0.52% expense ratio decreases the expected yield to 4.71%. Still, it's one of the highest-yielding pure equity funds on the market.
- Negative Wall Street earnings revisions are one reason why PEY's holdings have such high yields. However, last quarter sales and earnings surprise results suggest these analysts are too bearish.
- Along with an ultra-low 13.98x forward earnings valuation, PEY could be a solid income play. These positive features should be weighed against the fund's persistent negative features, which include high fees, poor quality, and minimal growth potential.
Investment Thesis
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PEY: Is Wall Street Too Bearish On This 4.71% Yielding Dividend Achievers ETF?